The former Reliance Communications group MD secured release from a Mumbai CBI court on medical grounds, despite a CBI probe alleging nearly ₹3,000 crore loan fraud.
A Mumbai special CBI court on Thursday ordered bail for Amitabh Jhunjhunwala, the former group managing director of Reliance Communications, citing his medical condition. The decision comes after the Central Bureau of Investigation arrested the 70‑year‑old executive on June 1 in connection with a massive loan fraud complaint lodged by State Bank of India.
Bail granted on health grounds
The court’s ruling mirrors an earlier order from the Delhi High Court, which also released Jhunjhunwala on similar grounds. Lawyers Aabad Ponda, Mudit Jain, Rahul Agarwal and Jasmin Purani argued that the senior citizen’s health warranted release, a point the judge accepted. The bench noted that the applicant, a chartered accountant with a five‑decade‑long clean professional record, should not remain in custody while he recovers.
The CBI’s case, filed on SBI’s complaint, alleges that the bank suffered a wrongful loss of roughly ₹2,929.05 crore because borrowers associated with Reliance Communications engaged in fraudulent activity. Prosecutor J.K. Sharma contended that the alleged financial crime was huge, emphasizing the public money at stake.
What the charges entail
According to the investigation, Jhunjhunwala, while serving as group MD of RADAG, exercised substantial control over the group’s companies alongside Vishwanath Devraja Rao, joint president of the firm. The CBI claims that despite credit facilities being sanctioned, the borrowers defaulted through deceit, triggering the colossal loss.
Jhunjhunwala’s defence team maintains that he never committed any offence. They point out that his role at the time of the alleged fraud was limited to a non‑executive vice‑chairmanship at Reliance Capital Ltd., an associate of the telecom arm, not an operational position that could influence loan disbursement.
Reactions and next steps
Legal observers note that the bail on medical grounds does not equate to exoneration. The investigation remains open and the court has scheduled further hearings. The CBI is expected to present additional evidence in the coming weeks, while Jhunjhunwala’s counsel will likely push for a swift closure, citing his age and health.
Industry insiders watch the case closely, given the size of the alleged loss and the high‑profile nature of the accused. If the probe uncovers deeper irregularities, it could trigger a broader scrutiny of corporate lending practices across the banking sector.
For now, the former telecom chief walks free, pending further legal proceedings. The next court date, yet to be announced, will determine whether the bail remains intact or if the judge imposes stricter conditions.
The saga points to how financial misconduct allegations can intersect with health considerations in India’s legal system, especially when senior executives are involved.
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