Investigators have alleged that Reliance Communications engaged in circuitous transactions through shell entities controlled by company officials. The probe also indicates the use of discounted letters of credit (LCs) for allegedly bogus service-related transactions with group entities, which subsequently devolved and resulted in significant losses to banks.
The Central Bureau of Investigation (CBI) has arrested two senior executives of M/s Reliance Communications, D Vishwanath and Anil Kalya, in connection with an alleged large-scale bank fraud case involving multiple public sector banks.
The case was registered by the CBI on a complaint filed by the State Bank of India (SBI) against Reliance Communications Limited, Anil D Ambani, and others, over alleged fraudulent activities linked to credit facilities extended to the company. According to SBI, the fraud has caused a total wrongful loss of around Rs 2,929.05 crore to the bank, while cumulative losses across 17 public sector banks and financial institutions are estimated at Rs 19,694.33 crore.
Investigators have alleged that Reliance Communications engaged in circuitous transactions through shell entities controlled by company officials. The probe also indicates the use of discounted letters of credit (LCs) for allegedly bogus service-related transactions with group entities, which subsequently devolved and resulted in significant losses to banks.
The CBI stated that D Vishwanath, who served as Joint President of Reliance Communications, was responsible for overseeing the group’s banking operations and played a key role in coordinating with banks for sanctioning and disbursal of credit facilities. Anil Kalya, Vice President of the company, is accused of actively supporting him and assisting in managing corporate finance, banking operations, and fund utilization.
Both accused executives are scheduled to be produced before the jurisdictional court. The investigation remains ongoing.
