The Central Bureau of Investigation has taken former Reliance Capital CFO Amit Bapna into custody regarding an alleged Rs 10,000 crore loan diversion case. The probe focuses on claims that funds were illegally routed through shell companies to benefit Reliance ADA Group entities, causing losses to public sector lenders.
What Happened
On July 4, 2026, the Central Bureau of Investigation (CBI) formally arrested Amit Bapna, the former Chief Financial Officer (CFO) of Reliance Capital Limited. Bapna, who served in the role between August 2014 and December 2019, was produced before a Special CBI Court in Mumbai following a production warrant. The court has granted the agency four days of police custody for further interrogation. Bapna was already in judicial custody at Tihar Jail due to an ongoing, separate investigation led by the Enforcement Directorate (ED).
Allegations of Fund Diversion
The investigation centers on claims that Bapna facilitated the approval of significant loans to intermediary firms, which investigators describe as "conduit" or shell companies. The CBI alleges that these loans were sanctioned in violation of Reserve Bank of India (RBI) guidelines and the specific terms agreed upon with public sector banks that provided the credit facilities. According to the investigation, money borrowed by Reliance Commercial Finance Limited (RCFL) was allegedly diverted through these intermediary entities to other companies within the Reliance ADA Group. Authorities claim this practice led to substantial financial losses for lending institutions.
Broader Investigation Context
This arrest is part of a larger, ongoing probe into alleged financial irregularities across multiple entities linked to the Reliance ADA Group, including Reliance Communications, Reliance Home Finance, and Reliance Telecom. The investigation was triggered by formal complaints filed by several public sector banks and the Life Insurance Corporation of India (LIC). This development marks the sixth arrest made by the CBI in connection with these group-wide investigations. The agency has already submitted a formal chargesheet in the separate Reliance Communications case, naming 16 different individuals and entities.
What Investors Should Track
For investors and market participants, the primary concern lies in the legal and financial accountability surrounding the Reliance ADA Group's past credit and lending practices. Key monitorables include the status of the CBI's interrogation of Bapna, further developments in the Enforcement Directorate’s separate case, and any potential implications for the ongoing insolvency or restructuring processes involving Reliance Group entities. Investors should continue to monitor official exchange filings for updates on legal proceedings, as these matters may influence the recoverability of assets and the eventual resolution of debts owed to various creditors.