Mumbai, October 22: The special CBI court has ordered the release of Amit Bapna, former CFO of Reliance Capital Limited (RCL) and a director of Reliance Home Finance Ltd (RHFL), who was arrested in cases registered following bank complaints over defaults in credit facilities.
According to the prosecution, RHFL obtained loans between 2015 and 2019, with Rs 4,446.31 crore outstanding to lenders as of June 30, 2019.
The CBI alleged that Bapna and other accused conspired to cheat banks by diverting loan proceeds to RHFL’s sister concerns and associate entities, termed potentially indirectly linked entities (PILE), through general purpose corporate loans (GPC loans).
Defence Challenges Role In Loan Applications
Bapna’s lawyers, Aabad Ponda, Sajal Yadav and Aayushya Geruja, argued that he had neither signed loan applications nor made representations to any public sector bank or financial institution to secure loans.
Opposing his plea, CBI prosecutor Anoop Yadav said the borrower company had obtained over Rs 9,280 crore from 32 banks and other financial institutions. He alleged that the accused induced lenders, including Bank of Maharashtra, to release public funds.
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Court Notes Similar Allegations Against Others
The court observed, “It cannot be concluded that the applicant without any authorisation had played any role in availing the loans and there was any inducement by the applicant to any person. Further the allegations levelled against the applicant are found to be similar to the other persons who were arrayed as accused persons in the present crime. But except the applicant and Mody, none of the other accused have been arrested by the CBI till date.”
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