SBI loan fraud case: CBI says Amitabh Jhunjhunwala secured Rs 1,200 crore in 2016

The CBI told a special court on Wednesday that Amitabh Jhunjhunwala played a key role in an alleged loan fraud linked to Reliance Communications. The agency said Jhunjhunwala got a Rs 1,200 crore SBI loan sanctioned in August 2016. The loan stayed unpaid, and SBI faced a claimed loss of Rs 971.25 crore. The court sent Jhunjhunwala to CBI custody till June 5.

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Investigators described Jhunjhunwala as central to the group’s financial decisions. The CBI said bank funds were used on Jhunjhunwala’s directions. The agency added that misuse of those funds caused wrongful losses to lenders. The CBI also said Jhunjhunwala’s questioning was needed to identify ultimate beneficiaries. The agency claimed that information was within Jhunjhunwala’s exclusive knowledge.

CBI loan fraud case: How the SBI complaint and FIR were linked

The case started after the State Bank of India filed a complaint against Reliance Communications and Anil Ambani. SBI alleged a wrongful loss of Rs 2,929.05 crore. The CBI said it registered an FIR on August 21, 2025. The FIR named RCOM, promoter Anil Ambani, and unknown public servants. The agency later sought a fresh remand to probe the alleged fraud.

A consortium of 11 banks led by SBI had sanctioned Rupee Term Loans to Reliance Communications. The FIR stated total exposure of Rs 19,694.33 crore. It also said the lending involved 17 Public Sector Banks. The CBI told the court it needed more time for detailed checks. The agency sought five days of remand on Wednesday.

CBI loan fraud case: Alleged fund use and routing to third parties

According to the CBI, RCOM and its units borrowed Rs 31,580 crore from banks. The units included Reliance Infratel Limited and Reliance Telecom Limited. The agency said Rs 13,667.73 crore, or 44 per cent, repaid bank loans and similar dues. It alleged Rs 12,692.31 crore, or 41 per cent, went to connected third parties. The CBI said books were manipulated to shift funds within the group.

The CBI pointed to a Capital Advance of Rs 5,300 crore given by RCOM to Netizen Engineering Pvt Ltd. The agency said Netizen was run by RCOM employees. It claimed the money was not meant for capital goods. The CBI alleged the transaction showed planned round-tripping. Investigators said such entries needed custodial questioning to trace the money trail.

CBI loan fraud case: Jhunjhunwala’s role and the Rs 1,200 crore SBI loan

The agency told the court that Jhunjhunwala controlled corporate finance and banking matters at Reliance Communications. It said Jhunjhunwala oversaw fund use and key company functions. The CBI claimed Jhunjhunwala personally filed the SBI term loan request in August 2016. The bank sanctioned and released the Rs 1,200 crore loan. The CBI said non-payment led to a Rs 971.25 crore wrongful loss.

The CBI also said Jhunjhunwala acted as a key link with senior bank officials. The agency argued that Jhunjhunwala could give leads on management and use of borrowed funds. Prosecutors said custody was needed to uncover the alleged conspiracy. The CBI claimed the plot involved the company, its promoters, directors, representatives, and public servants. Special public prosecutors A Limosin and Jitendra Sharma represented the CBI.

Jhunjhunwala was earlier in judicial custody at Tihar Jail in a connected money laundering case. That case is being investigated by the Enforcement Directorate. On Monday, Jhunjhunwala was produced before special CBI court judge J P Darekar on a production warrant. After formal steps, the CBI arrested Jhunjhunwala in the loan fraud case. The agency had filed a first charge sheet against 16 people last week.

Defence lawyer Mudit Jain opposed the remand request before the court. Jain said the charge sheet was already filed, and Jhunjhuwala was not named as an accused. Jain also told the court that the CBI called Jhunjhunwala as a witness. Jain added that Jhunjhunwala had no link with the alleged offence. After hearing both sides, the court remanded the accused to CBI custody till June 5.

With inputs from PTI