The Central Bureau of Investigation (CBI) on Monday arrested Amitabh Jhunjhunwala, former Group Managing Director of Reliance Communications (RCom), in connection with an alleged bank loan fraud case involving losses of Rs 2,929.05 crore to the State Bank of India (SBI).
Jhunjhunwala was already lodged in Delhi’s Tihar Jail in connection with a separate investigation being conducted by the Enforcement Directorate (ED). Following production warrants issued by a special court, he was brought to Mumbai by the CBI for proceedings in the RCom case.
Arrest follows court production in Mumbai
“He was brought to Mumbai and produced before the court on June 01, 2026. After his production, the CBI effected his formal arrest, which was taken on record by the court. Thereafter, the accused was remanded to judicial custody in the RCom case of the CBI and sent to Arthur Road Jail. His police custody petition will be taken up tomorrow (Tuesday),” the CBI Spokesperson said in a statement, according to PTI.
The agency said Jhunjhunwala held a key position within the Reliance Communications group and was involved in overseeing crucial functions related to corporate finance, banking operations and fund utilisation.
CBI alleges role in loan utilisation and bank dealings
According to the investigating agency, Jhunjhunwala coordinated with senior bank officials for securing loans and advances on behalf of the company.
“He was the Group Managing Director of Reliance Communications group and was controlling important functions like corporate finance, banking, utilisation of funds, etc,” the agency Spokesperson said, according to PTI.
“He coordinated with senior formations of the bank for loans and advances. Based on his directions, loan funds received from the banks were managed and utilised by other officials of the Rcom group. It is alleged that due to misutilisation of loan funds, the banks suffered wrongful losses,” the agency Spokesperson added.
The case stems from a complaint alleging that Reliance Communications and its promoters caused significant losses to a consortium of lenders led by SBI after the company failed to repay loans extended by multiple banks.
Consortium exposure exceeded Rs 19,000 crore
The CBI had earlier registered an FIR against Reliance Communications and businessman Anil Ambani in connection with the alleged fraud.
“The consortium of 11 banks, led by the State Bank of India, together suffered a loss of 6015 crore. According to the complaint, the total exposure towards RCom amounted to Rs. 19,694.33 crore involving 17 PSU Banks,” the Spokesperson said, according to PTI.
Investigators have alleged that Jhunjhunwala played an important role in obtaining loans from various banks that later turned into non-performing assets (NPAs).
“Jhunjhunwala was allegedly instrumental in getting loans from various banks that have become NPAs as the company did not pay the amounts back,” the statement said.
Multiple investigations underway against Reliance group entities
The agency further alleged that Jhunjhunwala acted on directions from the promoters and directors of Reliance Communications group companies during the period under investigation.
“He was taking instructions from the promoters and directors of the Reliance Communications Group companies,” the Spokesperson said.
Apart from the RCom case, the CBI has registered six additional FIRs involving Reliance Communications, Reliance Home Finance Ltd, Reliance Commercial Finance Ltd and RTL based on complaints filed by public sector banks and Life Insurance Corporation (LIC).
The investigations in these cases are being monitored by the Supreme Court. Meanwhile, the CBI recently filed its first chargesheet in the RCom matter on May 29, 2026, naming 16 accused, including the company, five former senior executives and 10 bank officials.