Bombay HC Grants Bail To Ex-Reliance Communications Executive In Alleged ₹618 Crore Bank Fraud Case

Mumbai, September 1, 2026: The Bombay High Court has granted bail to a former senior executive of the Reliance Communications group, observing that the allegations against him were “generic” and that the CBI had not prima facie shown any specific overt act linking him to the alleged bank fraud.

Former Executive Granted Bail

Justice Milind Jadhav granted bail to Vishwanath Rao, 67, who was arrested on April 24, 2026, in a CBI case concerning alleged diversion and round-tripping of loan funds. Rao, who worked as Senior Vice President / Joint President and handled corporate finance operations, was accused of participating in the sanction and disbursement of credit facilities obtained through alleged misrepresentation.

The CBI opposed the plea, claiming that banking records, internal communications and transaction trails indicated Rao’s “active and direct involvement” in layered transactions, bill discounting arrangements and routing of funds through Reliance group entities.

CBI Alleges Rs 618 Crore Loss

It alleged that Letters of Credit were obtained through misrepresentation and suppression of records, causing a loss of Rs 618 crore to two banks. The agency also alleged wrongful loss of Rs 2,929.05 crore through diversion and round-tripping of funds.

However, the court noted that no direct evidence of any overt act of misrepresentation or suppression had been shown against Rao.

“No such overt act attributed to the Applicant is prima facie shown to Court. No direct evidence of any overt act is either shown to Court or directly attributed to the Applicant,” Justice Jadhav said.

Court Questions Specific Role

The court also noted that the prosecution’s case was largely based on institutional and documentary records, including loan agreements, sanction letters, audit reports and regulatory filings.

On the allegation concerning diversion of funds, the judge said the prosecution needed to show Rao’s precise role, knowledge and motive. “Without specific facts being pleaded for such a humongous charge, prosecution case at this stage cannot be accepted at face value,” the court observed.

The court further noted that no money or material had been recovered from Rao and that even the prosecution did not claim he was a beneficiary of the alleged transactions. It also considered his cooperation during the investigation.

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Bail Granted With Conditions

Rao was granted bail on a personal bond of Rs 1 lakh with sureties. He must report to the investigating officer monthly, cooperate with the trial, remain in Maharashtra unless permitted by the trial court, and not influence witnesses or tamper with evidence.

The court clarified that its observations were only for deciding the bail plea and would not affect the trial on merits.

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