Mumbai Special CBI Court Grants Bail To Ex-RCFL CEO Devang Mody In ₹9,280 Cr. Loan Diversion Case
The Special CBI Court at Mumbai on 29 August granted bail to Devang Pravin Mody, former CEO and Director of Reliance Commercial Finance Limited (RCFL), in a case concerning the alleged diversion of loans worth about Rs. 9,280 crore sanctioned by a consortium of 31 banks and financial institutions to RCFL and group entities.
Special Judge Nitin Virsen Jiwane allowed Mody's bail application, noting that the allegations regarding his alleged role were generic, other accused had not been arrested, the investigation was complete and the charge-sheet had been filed. He held:
"Thus looking to the allegations against the applicant regarding his alleged role in the commissioning of the offence, which are found to be generic in nature, the fact that other accused persons were not arrested by the CBI till date, the fact that the offence to have been alleged provides punishment upto seven years imprisonment, the investigation is completed and charge-sheet is filed in the Court, the existence of Look Out Circular in forced against the applicant ruling out the possibility of fleeing away from trial and the non requirement of any custodial interrogation of applicant for further investigation, I am of the considered opinion that the discretion in granting the bail needs to be exercised in favour of the applicant."
The case arises from a Central Bureau of Investigation (CBI) First Information Report (FIR) registered on 6 December 2025 on the complaint of Bank of Maharashtra Deputy General Manager Aditya Prakash. The FIR names RCFL, Mody, former Director Ravindra Rao and others for alleged offences under the Indian Penal Code (IPC) and the Prevention of Corruption Act.
The CBI alleged that Mody, who served as CEO and Director from April 2017 to December 2018, was a key decision-maker who approved loans contrary to Reserve Bank of India directions. It claimed that his custody was required to uncover the alleged conspiracy and identify the beneficiaries.
Mody argued that he was the only accused arrested by the CBI despite other approving authorities not having been arrested. He submitted that there was no allegation that he personally benefited from the alleged offence, that the charge-sheet had already been filed and that Section 409 of the IPC, which deals with criminal breach of trust by a public servant, banker, merchant or agent, was not invoked in the charge-sheet.
The Court found that, at the prima facie stage, there was no concrete material to show that Mody had participated in availing the loans or induced anyone to do so. It also noted that the allegations against him were similar to those against other approving authorities, none of whom had been arrested.
It further found that the apprehension of Mody influencing witnesses or tampering with evidence was not material, particularly as the evidence was predominantly documentary and had already been seized. It noted that Mody had appeared before the CBI on several occasions before his arrest on 22 June 2026.
The Bench also noted that although the CBI had invoked Section 409 of the IPC against Mody and other accused at the remand stage, the provision was not invoked in the charge-sheet. Instead, the charge-sheet invoked Section 420 read with Section 120-B of the IPC, concerning cheating and criminal conspiracy respectively.
Accordingly, the Court granted Mody bail on a Rs. 1 lakh personal recognisance bond with one or two sureties, subject to conditions including surrender of his passport, not travelling outside India without the Court's permission and regularly appearing before the Court and the CBI.
For Applicant: Senior Advocate Aabad Ponda, Advocates Pranjit Bhattacharya, Avdhoot Prabhu, Dhruv Mishra
For CBI: J.K. Sharma, Senior P.P