The Central Bureau of Investigation (CBI) has arrested the former chief executives of Reliance Commercial Finance Limited (RCFL) and Reliance Home Finance Limited (RHFL). The arrests are part of an ongoing crackdown into a massive banking fraud that allegedly siphoned off ₹7,623 crore from multiple public sector banks (PSBs).
The Arrests and the Financial Fallout
The federal agency arrested Devang Mody, former director and CEO of RCFL, alongside Ravindra Sudhalkar, former executive director and CEO of RHFL. According to the CBI, both individuals were key decision-makers who allegedly bypassed regulatory frameworks to clear high-risk loans.
The scale of the alleged fraud spans over two dozen public sector lenders:
| Company | Former CEO Involved | Tenor as CEO | Estimated Loss | Affected Lenders |
| Reliance Commercial Finance Ltd (RCFL) | Devang Mody | April 2017 – Dec 2018 | ₹4,097 Crore | 13 Public Sector Banks |
| Reliance Home Finance Ltd (RHFL) | Ravindra Sudhalkar | Oct 2016 – March 2022 | ₹3,526 Crore | 10 Public Sector Banks |
| Total Impact | ₹7,623 Crore | 23 PSB Accounts |
The Modus Operandi: Diverting Public Funds
The CBI’s investigation revealed a systemic violation of credit norms. Both executives allegedly utilized their positions to approve large-scale loans to shell and intermediary “conduit” companies despite knowing the transactions violated Reserve Bank of India (RBI) and National Housing Bank (NHB) guidelines.
“The accused diverted funds borrowed by RCFL and RHFL to Reliance ADA Group companies, including Reliance Capital Limited, Reliance Infrastructure Limited, and Reliance Power Limited, thereby causing a combined wrongful loss to the lending banks.”
— CBI Official Statement
Instead of utilizing the capital for legitimate commercial or housing finance, the funds were rerouted back into the parent conglomerate’s flagship entities, creating substantial wrongful gains for the related companies at the expense of taxpayers.
A Widening Dragnet
The arrests mark an escalation in a broader corporate fraud investigation. Based on formal complaints filed by public sector banks and the Life Insurance Corporation of India (LIC), the CBI has registered seven distinct FIRs targeting several ADA Group-linked firms, including:
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Reliance Communications Limited (RCom)
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Reliance Telecom Limited (RTL)
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Reliance Home Finance Limited (RHFL)
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Reliance Commercial Finance Limited (RCFL)
To date, five individuals have been taken into custody under the Reliance ADA Group probe. The agency filed its first major chargesheet in the RCom wing of the case on May 29, naming 16 entities and individuals, including five senior company executives and ten complicit banking officials.
