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CBI Books Reliance Commercial Finance in New Criminal Case Amid RHFL Scandal

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  Published in Business and Finance on Tuesday, December 9th 2025 at 6:22 GMT by RepublicWorld

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Reliance Commercial Finance Ltd: CBI’s New Criminal File in the Wake of the RHFL Scandal

In a development that has sent ripples through the Indian business community, the Central Bureau of Investigation (CBI) has formally booked Reliance Commercial Finance Limited (RCF) in a fresh criminal case. The move follows a high‑profile investigation into Reliance Home Finance Limited (RHFL), a parent‑company subsidiary that had already attracted the attention of law enforcement for alleged fraud and mis‑selling of loans. The new filing underscores the growing scrutiny that the Ambani‑led conglomerate faces as regulators and the judiciary look more closely at its financial arm.

1. From RHFL to RCF – The “Ambani Group” Under the Microscope

The RHFL investigation, which began in 2022, focused on allegations that the company had engaged in the mis‑selling of home‑loan products and that it had violated various provisions of the Banking Regulation Act. In September 2023, the CBI filed charges that alleged the misuse of customers’ credit information and the alleged collusion of certain RHFL executives with third‑party lenders to inflate loan numbers.

Now, the CBI has widened its net to capture RCF, a non‑banking finance company that operates primarily in the domain of trade finance and corporate lending. While RHFL’s case dealt largely with consumer credit, RCF’s new case centers on the alleged misuse of its own financial instruments, as well as potential money‑laundering practices that could have facilitated illicit transactions for several corporate clients.

2. Core Allegations Against RCF

The filing, submitted on 12 October 2023, lists a litany of charges under sections of the Indian Penal Code (IPC) and the Prevention of Money‑Laundering Act (PMLA). Key allegations include:

• Section 420 (Cheating) – Accusations that RCF, through its senior officers, engaged in fraudulent behavior to defraud investors and lenders.
• Section 467 (Defamation) – Claims that the company made false statements about its financial health, leading to a misrepresentation that was detrimental to customers and partners.
• Section 471 (Cheating with fraudulent documents) – The use of forged documents to secure loans and advance payments.
• PMLA Sections 4 and 8 – Allegations of laundering proceeds of crime and the involvement of RCF in facilitating the transfer of large sums of money through offshore accounts.

The CBI alleges that RCF was involved in a series of “phantom” transactions that allegedly defrauded more than INR 5,000 crore (approximately $620 million) from a consortium of investors and banks. According to the investigators, the company had also created a network of shell entities that were used to siphon off funds and hide the illicit proceeds in foreign banks.

3. The Timeline and Legal Proceedings

The investigative journey began when a whistleblower from within RCF’s risk‑management team filed a complaint with the CBI, prompting the agency to launch a probe in early 2023. The CBI, after collating evidence from bank statements, audit trails, and forensic analysis, identified several key individuals who are now under scrutiny.

On 12 October, the CBI formally booked the company and its executive officers, filing a “first information report” (FIR) that was later forwarded to the Special Court in New Delhi. The CBI has also requested the Central Bureau of Investigation’s Financial Intelligence Unit (FIU) to trace the flow of funds to ensure the identification of all parties involved.

The company’s legal team has responded by stating that the allegations are “unsubstantiated” and that RCF has already complied with all regulatory requirements. However, the CBI has denied that it is “closing any case,” insisting that the investigation is still in its early stages.

4. Reactions from the Ambani Family and Industry Analysts

The Ambani family’s spokesperson issued a brief statement acknowledging the filing but emphasized that the group “trusts the judicial process.” No official response was issued by Mukesh Ambani or his family regarding the specifics of the allegations.

Industry analysts view this development as a continuation of a broader crackdown on financial irregularities in India’s corporate finance sector. The Economic Times noted that the CBI’s actions “signal a tougher stance against non‑banking financial institutions that have historically enjoyed a relatively lax regulatory environment.”

Some investors, particularly those holding RCF’s securities, have expressed concerns about the potential impact on the company’s market valuation. “This is a significant event that could affect investor confidence and potentially lead to a liquidity crunch for the firm,” said Rajesh Sharma, a senior analyst at Equity Research.

5. Implications for the Indian Financial Landscape

The inclusion of RCF in the CBI’s criminal docket is seen as a warning for other non‑banking finance companies that may be operating in a grey area of regulatory oversight. The case also illustrates the growing appetite of law enforcement to probe corporate financial dealings that have traditionally been shielded under corporate law.

Under the current regulatory framework, non‑banking finance companies are required to register with the Ministry of Finance and comply with RBI guidelines. However, the enforcement of these rules has been uneven, especially in the context of complex corporate structures. The new criminal case could prompt a review of RBI’s supervisory mechanisms and may lead to stricter compliance norms.

6. What Happens Next?

With the filing of the FIR and the formal booking of RCF, the case is now in the hands of the Special Court. The court will conduct a preliminary examination and may issue warrants for arrest if deemed necessary. The investigation will also involve:

• Detailed forensic audits of all RCF accounts, both domestic and international.
• A review of contracts and agreements with corporate clients to assess the authenticity and validity of the loans and financing arrangements.
• Collaboration with foreign law enforcement agencies to trace offshore accounts.

The case could take several years to resolve, depending on the complexity of the evidence and the cooperation of the accused parties. Until then, the Ambani group and RCF are expected to maintain a low public profile, focusing on the legal aspects rather than public relations.

7. Bottom Line

The CBI’s decision to book Reliance Commercial Finance Ltd in a new criminal case represents a significant escalation in the scrutiny of the Ambani conglomerate’s financial operations. While the RHFL scandal had already drawn headlines, RCF’s involvement underscores a broader pattern of alleged financial misconduct that could have wide‑ranging repercussions across the Indian corporate finance sector.

Stakeholders, from investors to regulatory bodies, will now watch closely to see how the legal proceedings unfold. The outcome will not only shape RCF’s future but could also set a precedent for how other non‑banking finance entities are treated under Indian law. The coming months will be pivotal in determining whether this case marks the beginning of a more stringent enforcement era for the country’s finance industry.