CBI Arrests RCom's Former MD Amitabh Jhunjhunwala in in ₹2,929 Crore SBI Loan Fraud Case

As per PTI news report, the Central Bureau of Investigation (CBI) has arrested Amitabh Jhunjhunwala, the former Group Managing Director of Reliance Communications (RCom), in connection with a loan fraud case involving the State Bank of India (SBI).  

The arrest is linked to a ₹2,929.05 crore loss caused to the bank. 

Details of the Arrest 

On June 1, 2026, Amitabh Jhunjhunwala was formally arrested by the CBI in Mumbai after being produced in court.  

Jhunjhunwala, already in judicial custody due to an ongoing Enforcement Directorate investigation, was transferred from Tihar Jail to Mumbai following a production warrant issued by a special court. 

The CBI alleges that Jhunjhunwala, during his tenure as Group Managing Director, played a crucial role in managing corporate finance and banking functions at RCom.  

He is accused of coordinating with senior bank officials to secure loans, which were subsequently misused, leading to significant financial losses for the banks involved. 

Impact on SBI and Other Banks 

The fraudulent activities allegedly orchestrated by Jhunjhunwala resulted in a ₹2,929.05 crore loss to SBI, which was part of a consortium of 11 banks.  

The total loss suffered by this consortium is reported to be ₹6,015 crore, with a total exposure of ₹19,694.33 crore towards RCom. 

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Additional FIRs and Legal Proceedings 

In addition to the primary case, the CBI has registered 6 more FIRs against RCom and related entities, including Reliance Home Finance Ltd and Reliance Commercial Finance Limited.  

These FIRs are based on complaints from various public sector banks and the Life Insurance Corporation of India (LIC). The Supreme Court is monitoring the investigations into these cases. 

Chargesheet and Allegations 

The CBI filed its first chargesheet in the RCom case on May 29, 2026, naming 16 accused, including the company itself, 5 senior executives, and 10 bank officials.  

Jhunjhunwala is alleged to have been instrumental in obtaining loans that turned into non-performing assets (NPAs) due to non-repayment. 

Conclusion 

The arrest of Amitabh Jhunjhunwala marks a significant development in the ongoing investigation into the SBI loan fraud case involving RCom. The CBI's actions highlight the serious nature of the allegations and the substantial financial impact on the banking sector. 

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