Devang Mody and Ravindra Sudhalkar Held in Separate Cases Linked to Alleged Fraud Against Public Sector Banks
New Delhi (Economy India): The Central Bureau of Investigation (CBI) on Monday arrested the former chief executives of Reliance Commercial Finance Limited (RCFL) and Reliance Home Finance Limited (RHFL) in connection with separate bank fraud cases involving an alleged loss of ₹7,623 crore to a consortium of public sector banks.
According to officials, the agency arrested Devang Mody, former director and chief executive officer of RCFL, and Ravindra Sudhalkar, former executive director and chief executive officer of RHFL, following investigations into alleged financial irregularities and diversion of loan funds.
The cases are part of the CBI’s continuing efforts to investigate large-scale banking frauds involving corporate borrowers and financial institutions.
Alleged Fraud Involving Public Sector Banks
Investigators allege that the two companies caused significant financial losses to multiple public sector banks through alleged irregularities in loan utilization, diversion of funds, and violations of lending norms.
The combined amount involved in the separate cases is estimated at ₹7,623 crore, making it one of the significant banking fraud investigations currently under scrutiny.
Officials said the allegations relate to the misuse of credit facilities and non-compliance with the terms and conditions under which loans were sanctioned.
Former Executives Arrested
The CBI arrested Devang Mody, who served as director and chief executive officer of Reliance Commercial Finance Limited, and Ravindra Sudhalkar, former executive director and chief executive officer of Reliance Home Finance Limited.
Both individuals are expected to be produced before a competent court, where the investigating agency may seek their custody for further questioning.
The agency is examining financial transactions, internal approvals, lending practices, and the movement of funds associated with the companies.
Investigation Into Loan Diversion
Officials said the investigation is focused on determining whether the borrowed funds were utilized for the intended purposes or diverted through various transactions.
Investigators are also examining the role of company officials, financial intermediaries, and other individuals connected to the transactions.
The CBI is coordinating with banks and regulatory agencies to collect documentary evidence and financial records related to the cases.
Impact on Banking Sector
Large corporate loan defaults and alleged financial frauds have raised concerns about risk management and credit monitoring within the banking sector.
Public sector banks have strengthened due diligence mechanisms and monitoring systems in recent years to reduce exposure to potential financial irregularities.
Experts believe that strict enforcement actions and accountability measures are necessary to improve confidence in the financial system.
CBI Continues Crackdown on Financial Crimes
The agency has intensified investigations into major banking fraud cases involving large corporate entities and financial institutions.
Officials stated that the objective is to identify the individuals responsible, recover public money wherever possible, and strengthen accountability in the financial sector.
The investigation is continuing, and additional developments may emerge as the agency examines financial records and related transactions.
The arrests represent another significant step in ongoing efforts to address large-scale financial frauds and protect the interests of public sector banks and depositors.
(Economy India)
