CBI Arrests Former Reliance Communications MD Amitabh Jhunjhunwala in Rs 2,929 Cr Bank Fraud Probe

The Central Bureau of Investigation (CBI) has arrested Amitabh Jhunjhunwala, a prominent former executive of the Reliance Communications (RCom) Group. The arrest is a major development in the ongoing investigation into massive alleged bank fraud involving the telecommunications company.

Jhunjhunwala, who previously served as the Group Managing Director of Reliance Communications Group, is accused of holding central control over critical financial operations, including corporate finance, banking relations, and the deployment of funds.

The Allegations: Fund Misutilisation and NPA Creation

According to investigators, Jhunjhunwala acted as the primary liaison with senior banking officials to secure loans and advances for the company. The CBI alleges that once these loan funds were obtained, they were managed and routed by other RCom Group officials, resulting in extensive wrongful losses to lenders through systematic misutilisation.

Because the company ultimately failed to clear its dues, these accounts were downgraded to Non-Performing Assets (NPAs). The central agency further stated that Jhunjhunwala operated directly under the instructions of the promoters and directors of the Reliance Communications Group companies.

“The agency has alleged that loan funds received from banks were managed or utilised by other officials of the RCom Group, leading to wrongful losses to banks due to misutilisation.”

Transit from Tihar Jail to Mumbai Court

Prior to this arrest, Jhunjhunwala was already in judicial custody in New Delhi, lodged inside Tihar Jail for a separate case being investigated by the Enforcement Directorate (ED).

Following the issuance of production warrants by a special court in Mumbai, capital authorities transferred him to the All India Institute of Medical Sciences (AIIMS), New Delhi, for a detailed medical assessment. Once the AIIMS medical board declared him medically fit to travel, he was escorted to Mumbai.

Jhunjhunwala was produced before the Mumbai court on June 1, 2026. The CBI executed his formal arrest upon arrival, which the court officially took on record. He has since been remanded to judicial custody tied specifically to the RCom case and transferred to Arthur Road Jail. The court is expected to hear the CBI's plea requesting his active police custody on Tuesday.

Financial Scale and Multiple FIRs

The root of the investigation stems from a formal complaint lodged by the State Bank of India (SBI) against Reliance Communications Limited and Anil D Ambani. The complaint alleges that the actions of the company and its leadership caused a direct loss of Rs 2,929.05 crore to SBI alone.

Furthermore, a consortium of 11 banking institutions led by SBI had sanctioned term loans to Reliance Communications Limited, collectively incurring alleged losses of Rs 6,015 crore.

The total financial exposure toward RCom stands at Rs 19,694.33 crore, spanning 17 public sector banks. Beyond the primary case, the CBI has registered six additional FIRs against RCom, RHFL, RCFL, and RTL following separate complaints from various public sector financial institutions and the Life Insurance Corporation (LIC). These interconnected cases remain under active investigation under the direct monitoring of the Supreme Court.

The CBI confirmed it filed its first formal chargesheet in the RCom matter on May 29, 2026, naming 16 accused parties. The list includes the corporate entity itself, five senior RCom executives, and 10 banking officials. Representatives for the agency emphasized that the CBI remains committed to conducting an expeditious and detailed investigation into the cases.