The Central Bureau of Investigation (CBI) has arrested two former CEOs of Reliance ADAG companies in connection with ongoing corruption cases.
The arrested executives are Devang Mody, former director and CEO of Reliance Commercial Finance Limited (RCFL), and Ravindra Sudhalkar, former executive director and CEO of Reliance Home Finance Limited (RHFL).
The agency said that in the RCFL case, a loss of ₹4,097 crore has been caused to 13 public sector banks, while in the RHFL case, ₹3,526 crore loss has been caused to 10 public sector banks.
Investigation has revealed that Devang Mody and Ravindra Sudhalkar approved loans to intermediary and conduit companies despite being aware that such lending was contrary to RBI guidelines and the sanction conditions governing borrowings from PSBs.
The agency further said its probe revealed that the accused persons diverted funds borrowed by RCFL and RHFL to Reliance ADA Group companies, causing a combined wrongful loss of ₹7,623 crores to the lending banks and corresponding wrongful gain to themselves and related entities.
