CBI Arrests Two Former Reliance ADAG CEOs in Bank-Loss Loan Probes

The Central Bureau of Investigation has arrested two former chief executives of Reliance ADAG companies in corruption cases tied to alleged loan irregularities, in a move that turns fresh scrutiny on lending controls inside India's non-bank finance sector. The agency alleges that decisions taken within these firms inflicted heavy losses on public sector banks.

Who has been arrested

The arrested executives were identified as Devang Mody, former director and CEO of Reliance Commercial Finance Limited, and Ravindra Sudhalkar, former executive director and CEO of Reliance Home Finance Limited. Both headed lending businesses within the Anil Dhirubhai Ambani Group during the periods under examination.

The Reliance group had not responded at the time the underlying report was published, and the allegations are yet to be tested in court.

The scale of the alleged losses

According to the CBI, one case involves wrongful losses of Rs 4,097 crore to 13 public sector banks, while a second alleges losses of Rs 3,526 crore to 10 public sector banks. The agency says the accused approved loans to intermediary and conduit companies despite lending-policy and regulatory concerns, and that funds were subsequently diverted to related group companies.

Why it matters for the financial system

The arrests revive long-running questions about how large loans were sanctioned through non-bank lenders and how rigorously banks conducted due diligence on the end use of funds. They also sharpen the debate over individual accountability for credit decisions taken inside finance companies that later defaulted.

• Devang Mody, ex-CEO of Reliance Commercial Finance, arrested.
• Ravindra Sudhalkar, ex-CEO of Reliance Home Finance, arrested.
• Case 1: alleged Rs 4,097 crore loss to 13 public sector banks.
• Case 2: alleged Rs 3,526 crore loss to 10 public sector banks.
• CBI alleges loans to conduit firms and diversion to related group companies.

“The accused approved loans to intermediary and conduit companies despite lending-policy and regulatory concerns.”

— CBI statement, as cited in reports

With the cases now moving into the judicial phase, attention will shift to the evidence the agency presents and to whether the probe widens to other decision-makers. For India's banks and regulators, the episode is a renewed prompt to tighten lending oversight and conduit-monitoring across the non-bank finance space.

The NE Times View

Arrests of executives are easier than recovering the thousands of crores the banks are said to have lost, and that gap is the real story. The NE Times View: India's record on prosecuting big-ticket corporate loan defaults is one of headlines that rarely end in convictions or repayment. Watch whether this probe produces a recovery roadmap and accountability for the bankers who sanctioned the loans, not just a few perp-walks.

This article is original commentary and analysis by The NE Times. Background facts were referenced from Hindustan Times and Ground News.