New Delhi, India — April 20, 2026
In a major development impacting India’s banking sector, the Central Bureau of Investigation (CBI) has arrested two senior executives of Reliance Communications (RCom), a company linked to industrialist Anil Ambani, in connection with an alleged multi-billion-dollar bank fraud case.
The arrests come as part of an ongoing investigation into alleged financial irregularities involving corporate loans, shell entities, and questionable transactions that reportedly caused massive losses to multiple public sector banks.
Case Triggered by SBI Complaint
The action follows a formal complaint filed by State Bank of India (SBI), which accused the company of defaulting on sanctioned credit facilities through alleged fraudulent practices.
Based on the complaint, the CBI registered a formal case against Reliance Communications Limited, Anil Ambani, and other unidentified individuals. Investigators allege that the loans extended to the company were misused, resulting in significant financial losses to lenders.
₹19,694 Crore Impact Across Banks
The scale of the alleged fraud is substantial and extends beyond a single financial institution:
- SBI alone reported losses of approximately ₹2,929.05 crore
- A total of 17 public sector banks and financial institutions collectively suffered losses amounting to ₹19,694.33 crore
This makes the case one of the largest corporate banking fraud investigations currently under scrutiny in India.
How the Alleged Fraud Was Carried Out
According to preliminary findings by the CBI, the fraud involved complex financial manipulation techniques, including:
Use of Shell Companies
Investigators found that RCom allegedly routed funds through shell entities controlled by company insiders. These entities were reportedly used to create circular transactions that masked the true nature of fund utilization.
Fake Transactions and LC Misuse
The probe also revealed that the company allegedly engaged in fictitious service transactions with group entities. These transactions were used to secure and discount Letters of Credit (LCs), which later defaulted, causing heavy losses to banks.
Executives Arrested, Probe Continues
The two arrested executives have been identified as D. Vishwanath and Anil Kalya, both holding senior positions within Reliance Communications.
The CBI has stated that further investigation is ongoing, with a focus on uncovering the full extent of the alleged fraud network, including the role of additional individuals and entities linked to the case.
