CBI Clamps Down On RCom Era, Arrests Ex-Group MD Amitabh Jhunjhunwala In Big-Ticket Bank Fraud

Nikunj Parikh - Mumbai Bureau Jun 01, 2026 1,150 Views

The Central Bureau of Investigation has arrested Amitabh Jhunjhunwala, former Group Managing Director of the Reliance Communications group, in a high-profile bank fraud case linked to an SBI-led consortium. The move marks a sharp escalation in the long-running probe into alleged fund misuse and loan defaults by the Anil Ambani-led telecom group.

According to CBI statements and court filings, Jhunjhunwala was already in judicial custody in a separate Enforcement Directorate money-laundering case and lodged in Tihar Jail. He was brought to Mumbai on production warrants, produced before a special court, and then formally arrested in the CBI’s bank fraud case, before being remanded to judicial custody and sent to Arthur Road Jail.

Allegations Around Loan Misuse

Investigators allege that as group MD, Jhunjhunwala played a central role in securing large term loans from a consortium of public sector banks led by State Bank of India and oversaw key functions such as corporate finance, banking relationships and utilisation of funds. The CBI claims that loan proceeds were misutilised under his watch, leading to wrongful losses for lenders and turning several accounts into non-performing assets.

Scale Of The Alleged Bank Fraud

The CBI’s FIR, based on SBI’s complaint, pegs the loss to SBI alone at about ₹2,929 crore, while the consortium of 11 banks is estimated to have suffered losses of around ₹6,015 crore. Overall bank exposure to Reliance Communications entities is pegged near ₹19,700 crore across 17 public sector banks, with multiple related FIRs under investigation and Supreme Court monitoring of the broader probe.

Key highlights

CBI arrests former Reliance Communications Group MD Amitabh Jhunjhunwala
Alleged role in misutilisation of bank loan funds and turning accounts into NPAs
Case stems from SBI complaint citing losses of about ₹2,929 crore
Consortium of 11 PSU banks said to have lost around ₹6,015 crore
Jhunjhunwala moved from Tihar Jail to Mumbai and remanded to judicial custody in CBI case