Mumbai, Jun 5 A special court here on Friday remanded Amitabh Jhunjhunwala, former group managing director of Anil Ambani-led Reliance Communications, in 14-day judicial custody in an alleged bank loan fraud case.
Jhunjhunwala was produced before special CBI court judge J P Darekar at the end of his police remand. He was remanded in judicial custody as no further remand was sought by the Central Bureau of Investigation.
Jhunjhunwala is also an accused in a related money laundering case being probed by the Enforcement Directorate (ED).
According to the probe agency, Jhunjhunwala, as group managing director of Reliance Communications, a Reliance ADAG firm, controlled key aspects of the company's functioning, including corporate finance, banking and utilization of funds.
Based on his directions, loan funds received from the banks were managed / utilized by other officials of the RCom group, the CBI alleged.
Due to misutilization of loan funds, the banks suffered wrongful losses, the CBI has said.
The agency registered the case on SBI's complaint against Reliance Communications Limited and Anil Ambani for allegedly causing a loss of Rs 2,929.05 crore to the bank.
'Rupee Term Loans' were sanctioned to Reliance Communications Limited by a consortium of 11 banks led by the State Bank of India. As per the FIR, the total exposure amounted to Rs 19,694.33 crore and involved 17 public sector banks.
