Mumbai: Special CBI Court Remands Former RCFL CEO Devang Mody, Ex-RHFL CEO Ravindra Sudhalkar To Custody

Mumbai, June 24: The special CBI court has remanded Devang Mody, former Director and Chief Executive Officer of Reliance Commercial Finance Limited (RCFL), and Ravindra Sudhalkar, former Executive Director and Chief Executive Officer of Reliance Home Finance Limited (RHFL), to CBI custody till Thursday. They have been arrested in connection with two separate cases registered by the CBI for alleged loan defaults.

Mody and Sudhalkar were arrested by the CBI on Monday in connection with the ongoing investigation into the Reliance ADA Group cases. In the RCFL case, the accused have caused a loss of Rs 4,097 crore to 13 Public Sector Banks (PSBs), whereas in the RHFL case, the loss amount is Rs 3,526 crore to 10 PSBs.

The two were produced before the special court on Tuesday, where the CBI sought their custody for further investigation. In the case of Mody, the court noted that, “It is alleged that the borrower company has availed from a consortium of 31 banks or financial institutions and thereby caused wrongful loss to the bank.”

CBI Seeks Custodial Interrogation

The prosecution submitted that Mody was Chief Executive Officer/Director of RCFL from April 2017 to December 2018. He was the Key Decision Maker of the company. His custody is required to unearth the criminal conspiracy, involvement of public servants or private persons, and ultimate beneficiaries.

The plea was opposed by Mody’s lawyer, who contended that Mody was not holding the said post when the alleged crime had taken place. Further, Mody had been called by the CBI approximately five times earlier and had cooperated with the investigation, the defence argued.

While remanding Mody to CBI custody, the special court observed that, “It is seen that there is huge financial fraud committed which is prima facie seen from the FIR. Further, the papers of the investigation show that there are some witnesses who have clarified the role of the present accused in the transaction in question.”

Court Notes Serious Nature Of Offence

In the case of Sudhalkar, CBI prosecutor J.K. Sharma argued that, “The accused was Executive Director and Chief Executive Officer of RHFL. He was looking after the day-to-day affairs of the company. He was the main person who used to interact with lender banks and deal with public funds so borrowed.”

The plea was opposed by the defence lawyer, who claimed that he was not holding office at the relevant time. Further, he was looking after the affairs of marketing and, therefore, was not concerned with the disbursement of the amount. He further submitted that the company is on the way to becoming insolvent.

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The court, while remanding Sudhalkar to CBI custody, observed that “his name is mentioned in the FIR. The documents of investigation show prima facie involvement of the accused. There is a huge financial fraud committed. The offence is serious in nature. Therefore, considering the nature of the offence, stage of investigation, standing of the accused, further CBI custody is justified.”

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