Bombay HC Grants Bail to Ex-Reliance Communications Executive in ₹618 Crore Fraud Case

The Bombay High Court has granted bail to Vishwanath Rao, 67, a former Senior Vice President of Reliance Communications, in a CBI case involving alleged diversion and round-tripping of loan funds. Justice Milind Jadhav noted that the CBI's allegations were "generic" and lacked prima facie evidence of any specific overt act directly linking Rao to the fraud.

Rao was arrested on April 24, 2026, and accused of participating in the sanction and disbursement of credit facilities obtained through alleged misrepresentation. The CBI claimed banking records and transaction trails showed his "active and direct involvement" in layered transactions and fund routing. The agency alleged that Letters of Credit were obtained through misrepresentation, causing ₹618 crore loss to two banks, with total wrongful loss of ₹2,929.05 crore through diversion.

However, the court ruled that the prosecution failed to demonstrate Rao's precise role, knowledge and motive in the alleged diversion. The judge emphasized that the case rested largely on institutional documents without direct evidence of any overt act attributed to the applicant.