Whalesbook
The arrests were made following a complaint filed by the State Bank of India (SBI). Investigators allege that senior Reliance Communications officials orchestrated fraudulent schemes, resulting in substantial financial losses for banks. Key to the CBI's case are transactions routed through "shell" companies, which the agency believes were controlled by company officials.
Reliance Communications had obtained discounted Letters of Credit (LCs) for purported service transactions with its own group entities. When these LCs devolved, meaning the bank had to pay out, it caused significant losses for the banks involved.
The two executives arrested are Anil Kalya, Vice President, and D Vishwanath, Joint President. According to the CBI, Vishwanath was responsible for the group's overall banking operations and allegedly directed the misuse of funds. He is also accused of coordinating with banks to secure credit facilities. Kalya is said to have actively supported Vishwanath in these operations.
This development is part of multiple cases the CBI has registered against the Anil Ambani-led group for alleged frauds totaling thousands of crores.