Medical Bail Granted: Ex-Reliance Exec Freed in Massive Bank Fraud

A special CBI court in Mumbai has granted bail on medical grounds to Amitabh Jhunjhunwala, the 70-year-old former vice-chairman of Reliance Capital. This decision, made on Tuesday, pertains to an alleged ₹4,097-crore bank fraud case linked to Reliance Commercial Finance Ltd (RCFL).

Special Judge Nitin V Jiwane's order closely followed a September 22 directive from the Delhi High Court. In a related money-laundering case, the Delhi court deemed Jhunjhunwala "sick or infirm," a criterion for medical bail under the Prevention of Money Laundering Act (PMLA).

Jhunjhunwala's legal team presented evidence of his deteriorating health, including spinal fractures, osteoporosis, sarcopenia, and coronary artery disease. They argued his condition worsened during his incarceration. The Delhi High Court had previously reviewed medical records indicating the necessity for supervised rehabilitation and pre-existing cardiac issues.

The CBI had opposed the bail, contending that the Delhi High Court's ruling was specific to a PMLA case and that medical findings required independent assessment for the current CBI case. The agency alleges Jhunjhunwala exercised significant control over RCFL's financial dealings, facilitating fund diversion to other group companies.

The fraud investigation initially began with a ₹57.47-crore loss reported by Bank of Maharashtra. Subsequently, complaints from 12 other public sector banks were consolidated, increasing the alleged total loss to approximately ₹4,097 crore. RCFL had borrowed substantial funds from 31 lenders before its account became a non-performing asset in March 2020.