Former Reliance Communications Group Managing Director Amitabh Jhunjhunwala has been lodged in Mumbai’s Arthur Road Jail after being arrested by the CBI in a multi-crore bank loan fraud case. He was earlier in judicial custody at Delhi’s Tihar Jail in a related money laundering case being probed by the Enforcement Directorate.

 

A Mumbai court allowed the CBI to arrest him and later remanded him to judicial custody, taking into account his transfer from Delhi and the late hour.

 

The CBI has alleged that bank loan funds were misutilised under his directions, resulting in wrongful losses to lending institutions. The case pertains to alleged misuse of a Rs 1,200 crore term loan from SBI, Rs 500 crore letter of credit from Bank of Maharashtra, and Rs 350 crore credit facility from Syndicate Bank.

 

The agency has already filed a chargesheet against 16 individuals and entities. While Jhunjhunwala has not been named in the chargesheet, the investigation against him is continuing.