Bombay High Court Grants Bail to Ex-Reliance Communications Executive Vishwanath Rao
The Bombay High Court has granted bail to Vishwanath Rao, a former senior executive of the Reliance Communications group, in connection with a Central Bureau of Investigation case involving alleged bank fraud, loan diversion, and round-tripping of funds in Mumbai.
Justice Milind Jadhav granted bail to the 67-year-old former executive after observing that the allegations levelled against him were generic. The court noted that the CBI had failed to prima facie establish any specific overt act linking Rao directly to the alleged financial misrepresentation or fraud.
Rao, who previously served as Senior Vice President and Joint President managing corporate finance operations, was arrested by the CBI on April 24, 2026. The agency accused him of participating in the sanction and disbursement of credit facilities secured through misrepresentation.
The CBI opposed Rao's bail application, contending that internal communications, banking records, and transaction trails demonstrated his active involvement in layered transactions, bill discounting arrangements, and routing funds through Reliance group entities. The agency alleged that Letters of Credit obtained via suppression of records caused a loss of Rs 618 crore to two banks, alongside a wrongful loss of Rs 2,929.05 crore via fund diversion.
However, Justice Jadhav pointed out that the prosecution relied largely on institutional and documentary records such as loan agreements, sanction letters, audit reports, and regulatory filings without showing direct evidence of an overt act by Rao.
The judge observed that the prosecution needed to establish Rao's precise role, knowledge, and motive regarding the alleged diversion of funds. The court stated that without specific facts being pleaded for such a humongous charge, the prosecution's case could not be accepted at face value at this stage.
The High Court also took into account that no money or material had been recovered from Rao, the prosecution did not claim he was a beneficiary of the transactions, and he had cooperated during the investigation.
Rao was granted bail on a personal bond of Rs 1 lakh with sureties. The court directed him to report to the investigating officer monthly, cooperate with the trial, remain within Maharashtra unless permitted by the trial court, and refrain from influencing witnesses or tampering with evidence.
