Amitabh Jhunjhunwala sent to CBI custody for 5 days in fraud case

A special CBI court in Mumbai today remanded Amitabh Jhunjhunwala, former managing director of the Anil Ambani-led Reliance Group, to Central Bureau of Investigation (CBI) custody for two days in connection with an alleged bank loan fraud case.

The order was passed by special judge JP Darekar who directed that Jhunjhunwala be kept in CBI custody till June 5.

The case relates to the alleged diversion and misuse of loan funds amounting to nearly ₹2,000 crore sanctioned by a consortium of banks to entities linked to the Reliance-ADAG group.

CBI has alleged that the funds were routed to shell companies on Jhunjhunwala’s directions, causing wrongful loss to the lending banks.

While he has not yet been named as an accused in the charge sheet, the agency has said its investigation against him is ongoing.

Jhunjhunwala is also in judicial custody in a separate but connected money laundering case being probed by the Enforcement Directorate (ED).

A special ED court in Delhi had permitted the CBI to secure his production in Mumbai for the purposes of arrest and interrogation in the predicate offence.

On June 1, the Mumbai court allowed the CBI to formally arrest Jhunjhunwala after he was brought from Tihar Jail pursuant to a transit production warrant.

He was subsequently sent to judicial custody, with the court noting the logistical challenges of producing him from Delhi.

During those proceedings, Jhunjhunwala’s counsel objected to the timing of his production, arguing that he was required to be produced only on June 5 as per the warrant.

The Court, however, permitted the CBI to proceed with the arrest in accordance with law.

The case forms part of a wider probe into alleged financial irregularities within group entities associated with industrialist Anil Ambani, which are also under scrutiny by the ED under the Prevention of Money Laundering Act.

Jhunjhunwala was represented by advocate Mudit Jain. 

Public Prosecutor Jitendar Sharma appeared for the CBI.