A special CBI court in Mumbai on Wednesday remanded Amitabh Jhunjhunwala, former Managing Director of the Reliance-ADAG Group, to the custody of the Central Bureau of Investigation (CBI) till June 5 in connection with an alleged bank loan fraud involving nearly Rs 2,000 crore.
Special Judge JP Darekar passed the order in a case arising from an ongoing investigation into the alleged diversion and misappropriation of loan funds sanctioned by a consortium of banks to entities associated with the Reliance-ADAG Group.
According to CBI, the loan amounts were allegedly diverted and routed through a network of shell companies at the instance of Jhunjhunwala, resulting in substantial wrongful loss to the lending banks and corresponding unlawful gain to the beneficiary entities. The agency is investigating allegations of financial irregularities, criminal conspiracy, cheating and diversion of public funds.
Although Jhunjhunwala has not yet been named as an accused in the charge sheet filed by the agency, the CBI informed the court that the investigation against him was ongoing and that his custodial interrogation was necessary to further probe into the alleged transactions and fund flow.
Jhunjhunwala is presently in judicial custody in a separate but related money laundering case being investigated by the Directorate of Enforcement (ED) under the provisions of the Prevention of Money Laundering Act (PMLA). In that matter, a special ED court in Delhi had permitted the CBI to secure his production before the Mumbai court for the purpose of arrest and interrogation in the predicate offence being investigated by the agency.
Pursuant to a transit production warrant, Jhunjhunwala was brought from Tihar Jail to Mumbai. On June 1, the special court permitted the CBI to formally arrest him in accordance with law. Following his production, he was initially remanded to judicial custody, with the court taking note of the logistical difficulties involved in repeatedly producing him from Delhi.
During the proceedings, the counsel appearing for Jhunjhunwala opposed the timing of his production and arrest, contending that under the transit warrant, he was required to be produced before the court only on June 5. However, the court rejected the objection and allowed the investigating agency to proceed with the arrest and subsequent custodial interrogation in accordance with the applicable legal procedure.
The case forms part of a larger investigation into alleged financial misconduct and loan-related irregularities involving companies linked to industrialist Anil Ambani. Several transactions and entities associated with the group are also under scrutiny by the Enforcement Directorate as part of parallel money laundering proceedings.
The CBI is continuing its investigation into the alleged diversion of bank funds and the role of individuals connected with the transactions, while related proceedings under anti-money laundering laws remain pending before the competent courts.
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