The Central Bureau of Investigation (CBI) made its move on Monday, June 22, 2026. The agency arrested the ex-CEOs of two Reliance groups: RCFL (Reliance Commercial Finance Limited) and RHFL (Reliance Home Finance Limited). These arrests have something to do with the case of fraud worth ₹7,623 crore involving some public sector banks. The news has surprised the financial sector.

Debang Modi was arrested for being the Director and CEO of RCFL. Ravindra Sudhakar was also arrested for being the Executive Director and CEO of RHFL. According to a spokesperson of CBI, the case of RCFL resulted in a loss of ₹4,097 crore to 13 public sector banks.

In the case of RHFL, there is a loss of ₹3,526 crore to 10 public sector banks. The investigations revealed that Debang Modi was the CEO of RCFL from April 2017 to December 2018. On the other hand, Ravindra Sudhakar was the RHFL Executive Director and CEO from October 1, 2016, to March 31, 2022. The agency has alleged these officials diverted funds taken on loan to other Reliance ADA Group firms, resulting in a loss of ₹7,623 crore to the banks.

The CBI’s investigation found Debang Modi to be a key decision maker on the functioning of the RCFL and had approved loans to intermediary and conduit companies. The CBI said it was aware that such an act was against the guidelines of the Reserve Bank of India (RBI) and the terms of borrowing from public sector banks. Ravindra Sudhakar is also accused of similar charges, he too had approved loans to intermediaries and conduit companies against the company’s lending policies and the guidelines issued by the National Housing Bank (NHB) and the RBI.

The agency alleges that the arrested officials diverted funds borrowed by RCFL and RHFL to Reliance ADA Group companies, including Reliance Capital Limited, Reliance Infrastructure Limited, and Reliance Power Limited. In doing so, they caused massive losses to the lending banks while securing illicit gains for themselves and related entities. This constitutes a serious case of financial irregularity.

The CBI has registered seven First Information Reports (FIRs) in this matter against Reliance Communications Limited (RCom), RHFL, RCFL, and Reliance Telecom Limited (RTL). These FIRs are based on complaints received from various public sector banks and the Life Insurance Corporation of India (LIC). The agency has arrested a total of five individuals in connection with cases involving the Reliance ADA Group. The CBI filed its first charge sheet in the RCom case on May 29, 2026, naming 16 accused, including the company, five senior RCom officials, and 10 bank officials.