India's CBI files second chargesheet and raids in Reliance loan fraud case

The Central Bureau of Investigation (CBI) filed a second chargesheet in the Reliance Communications loan fraud case, alleging that banks and financial institutions lost over Rs 19,000 crore of public money. The chargesheet names Netizen Engineering Pvt Ltd (formerly Reliance Infocomm Engineering) and its directors Anil Kalya and Tunu Sahu as accused of criminal conspiracy, misappropriation and cheating. The case originated from a complaint by the State Bank of India, with total exposure of public sector banks and financial institutions reported at Rs 19,694.33 crore.

In a related operation, the CBI conducted searches at 15 premises in Mumbai and Delhi covering 23 interlinked entities of the Reliance ADA Group, including Reliance Commercial Finance Ltd and Reliance Home Finance Ltd. The searches seized incriminating documents and are part of an investigation into the diversion of borrowed funds to other group companies, causing an estimated loss of about Rs 27,337 crore to public sector banks and the Life Insurance Corporation of India. All accused are in judicial custody and the probe is being monitored by the Supreme Court.