CBI arrests Reliance Capital's former CFO Amit Bapna in loan diversion case

The Central Bureau of Investigation (CBI) has arrested Amit Bapna, former Chief Financial Officer (CFO) of Reliance Capital Ltd., in connection with its ongoing investigation into the alleged diversion of funds involving companies of the Reliance ADA Group.

Bapna, who served as CFO of Reliance Capital between August 2014 and December 2019, was arrested on July 4 after being produced before a special CBI court in Mumbai. He was already lodged in Delhi's Tihar Jail in judicial custody in a separate case being investigated by the Enforcement Directorate (ED).

According to the CBI, Bapna was among the key decision-makers responsible for managing the financial affairs



of Reliance Capital and allegedly played a crucial role in facilitating loans to intermediary and conduit companies despite being aware that such lending was contrary to the Reserve Bank of India's guidelines and the conditions governing borrowings from public sector banks.

The agency alleged that funds borrowed by Reliance Commercial Finance Limited (RCFL) were diverted through intermediary entities to various Reliance ADA Group companies, including Reliance Capital Ltd., Reliance Infrastructure Ltd. and Reliance Power Ltd. The alleged diversion, the CBI said, resulted in wrongful losses to lending banks while conferring undue financial gains on the accused persons and related entities.