NEW DELHI: CBI has arrested 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), as part of its ongoing probe into the Reliance ADA Group cases.The arrests have been in connection with an alleged bank fraud that caused a cumulative loss of Rs 7,623 crore to 23 public sector banks.According to CBI, RCFL’s actions allegedly caused a loss of Rs 4,097 crore to 13 public sector banks, while RHFL caused a loss of Rs 3,526 crore to 10 public sector banks.“Mody…approved loans to intermediary and conduit companies despite being aware that such lending violated RBI guidelines and conditions attached to borrowings from public sector banks,” a senior official said. “Similarly, Sudhalkar, who served as RHFL’s executive director and CEO… sanctioned loans to intermediary and conduit firms in violation of the company’s lending policies, NHB and RBI guidelines, and conditions governing borrowings from public sector banks.”CBI said that funds borrowed by RCFL and RHFL were diverted to Reliance ADA Group companies, including Reliance Capital Ltd, Reliance Infrastructure Ltd and Reliance Power Ltd, resulting in wrongful losses to lending banks. It has registered seven FIRs against Reliance Communications Ltd, RHFL, RCFL and Reliance Telecom Ltd .The cases are currently under investigation and are being monitored by SC.CBI has arrested Devang Mody, former director and CEO of Reliance Commercial Finance Ltd (RCFL), and Ravindra Sudhalkar, former executive director and CEO of Reliance Home Finance Ltd (RHFL), as part of its probe into the Reliance ADAG cases. CBI said RCFL’s actions allegedly caused a loss of Rs 4,097 crore to 13 public sector banks, while RHFL allegedly caused a loss of Rs 3,526 crore to 10 PSBs.
