A major case of alleged financial fraud has come to light in Mumbai, where a complaint has been registered against several companies linked to the Reliance Group and their officials for an alleged fraud of nearly ₹50 crore. The case has been registered at the Cuff Parade Police Station following a complaint filed by Axis Bank and is currently being investigated by the Economic Offences Wing (EOW). Several former bank officials are also under the scanner in connection with the case. The FIR has further intensified the legal troubles of industrialist Anil Ambani.
According to the police, the complaint was lodged by Axis Bank Vice President Prakash Prabhakar Rao. Based on the complaint, companies including Reliance Commercial Finance Limited, Reliance Infrastructure Limited and Reliance Power Limited have been named as accused.
Apart from the companies, several officials have also been booked in the case. These include the then CEO of RCFL, Devang Pravin Modi, Amit Vijay Singh Bafna, and the then Vice Chairman of Reliance Capital Limited, Amitabh Jhunjhunwala, along with other company officials, promoters and certain bank officials who are currently under investigation.
According to the FIR, the accused allegedly hatched a pre-planned criminal conspiracy to obtain a cash credit loan from the bank. It is alleged that forged financial documents and misleading disclosures regarding the company’s financial condition were submitted to the bank in order to secure the loan approval.
The investigation has further revealed that the sanctioned loan amount was allegedly diverted to other group companies instead of being used for the intended business purposes, resulting in significant financial losses to Axis Bank.
Police said the alleged fraud took place between April 2016 and December 2023, causing a financial loss of around ₹50 crore to the bank. In connection with the case, the Colaba Police have registered an FIR under Sections 409, 420, 477(A) and 120(B) of the Indian Penal Code.
The Economic Offences Wing has begun a detailed probe into the matter and is currently examining relevant documents and financial transactions. Officials said the accused persons may soon be summoned for questioning.
It is noteworthy that the Central Bureau of Investigation has already been probing other matters related to Anil Ambani, further adding to the industrialist’s legal challenges.