New Delhi, 20 April (H.S.):

The Central Bureau of Investigation (CBI) has arrested two senior officials of Reliance Communications Limited, D. Vishwanath and Anil Kalya, in connection with a State Bank of India case. The action was taken in a matter registered on the basis of SBI’s complaint, which alleged that the company caused massive losses to banks through fraudulent activities. The agency has also questioned Reliance Communications chairman Anil Ambani several times.

The CBI said a regular case had been registered against Reliance Communications Limited, Anil D. Ambani and other unknown persons. According to the complaint, misuse of credit facilities extended to the company caused a loss of about Rs 2,929.05 crore to SBI, while the total loss to 17 public sector banks and financial institutions was estimated at nearly Rs 19,694.33 crore.

The investigation has found that the company carried out circular transactions through shell companies and opened discounted letters of credit for fictitious service-related transactions with group entities, which later became a burden on the banks.

The CBI said D. Vishwanath was in charge of banking operations as joint president of Reliance Communications, and the funds were misused under his direction. Vice-president Anil Kalya actively assisted him. Both officials were responsible for corporate finance, banking operations and fund utilisation.

The arrested accused will be produced before the court. The CBI said the investigation is continuing. The agency added that in recent months it has registered seven cases against the Anil Ambani-led Reliance group on complaints by public sector banks and LIC involving frauds worth thousands of crores.

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Hindusthan Samachar / Jun Sarkar