The Central Bureau of Investigation (CBI) has filed its first chargesheet in the alleged loan misuse case involving the Reliance ADA Group, naming 16 individuals and entities as accused. The chargesheet pertains to the alleged misuse of a Rs 1,200 crore term loan sanctioned by the State Bank of India (SBI), along with Rs 500 crore in letter of credit facilities from the Bank of Maharashtra (BOM) and Rs 350 crore in letter of credit facilities from Syndicate Bank.
Details of the Chargesheet
The CBI's investigation revealed that the loans and credit facilities were allegedly diverted for purposes other than those for which they were sanctioned. The agency has accused the Reliance ADA Group of criminal conspiracy, cheating, and fraud in connection with the misuse of these funds. The chargesheet was filed in a special court in Mumbai on 29 May 2026.
Accused Named in the Case
The chargesheet names 16 accused, including key officials of the Reliance ADA Group and the banks involved. Among those named are top executives of the group, who are alleged to have played a pivotal role in the diversion of funds. The CBI has also named several companies linked to the group as accused in the case.
Bank Loan Details
The CBI's probe focused on three major loan facilities:
- SBI Term Loan: Rs 1,200 crore sanctioned for infrastructure projects but allegedly misused.
- BOM Letter of Credit: Rs 500 crore provided for trade financing, which was allegedly diverted.
- Syndicate Bank Letter of Credit: Rs 350 crore sanctioned for similar purposes, also allegedly misused.
Investigation and Legal Proceedings
The CBI registered the case in 2024 after receiving complaints from the banks regarding default and misuse of funds. The investigation involved searches at multiple locations and examination of financial records. The agency has claimed that the loans were sanctioned based on fraudulent documents and that the funds were siphoned off to shell companies.
The court has taken cognizance of the chargesheet and issued summons to the accused. The next hearing is scheduled for June 2026. The CBI is expected to file supplementary chargesheets as the investigation progresses.
Reactions and Implications
The Reliance ADA Group has denied all allegations, stating that the loans were used for legitimate business purposes. The group has vowed to contest the charges in court. The case is seen as a significant development in India's crackdown on corporate loan defaults and financial fraud.
The CBI's action is part of a broader investigation into alleged loan frauds involving several corporate groups. The agency has been under pressure to expedite such cases to restore confidence in the banking system.
