Tag: CBI

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CBI arrests Nirav Modi aide in PNB scam

The Central Bureau of Investigation (CBI) has arrested Sandeep Bharat Mistry, an associate of fugitive businessman Nirav Modi, after he was deported from the United Arab Emirates and brought back to India in connection with the Punjab National Bank (PNB) fraud case.

Mistry arrived in Mumbai late on September 28 and was taken into custody by the CBI’s Bank Securities and Fraud Branch. He was produced before a special CBI court on September 29 and was sent to judicial custody until October 6. The arrest followed a non-bailable warrant issued by a special court in November 2025.

Mistry had served as a director of Fancy Creations Ltd, a Hong Kong-based company linked to Nirav Modi. According to the CBI, he allegedly acted as a key link between several entities associated with Modi and was involved in their day-to-day operations.

Investigators allege that Mistry played an active role in the criminal conspiracy through which PNB was allegedly cheated of nearly ₹6,498.20 crore. The agency has also alleged that he helped prepare forged import-export documents to create the appearance of fictitious international trade involving diamonds, gold and pearl jewellery.

The investigation covers financial transactions carried out through companies and bank accounts allegedly connected with the wider fraud. The CBI has further alleged that Mistry and other accused persons used self-deleting communication platforms to issue instructions and conceal evidence.

Investigators have also accused him and other associates of coercing people who were allegedly used as dummy directors of foreign companies. According to the allegations, some of these individuals were threatened, forced to relocate, had electronic devices seized and were made to sign documents that portrayed them as genuine owners of the companies.

The CBI has additionally alleged that funds were siphoned through bank accounts of dummy companies in the UAE. These allegations will be examined through the judicial process.

The arrest followed international efforts to trace Mistry, who was wanted in the PNB fraud investigation. An Interpol Red Notice was issued against him in July 2026 at the request of the CBI. UAE authorities subsequently traced and arrested him, following which deportation proceedings were initiated.

The CBI said the operation involved coordination with the Ministry of External Affairs and the Ministry of Home Affairs. Mistry was brought to Mumbai on September 28, where CBI officers took him into custody.

The development highlights the role of international cooperation in financial crime investigations, particularly when accused persons are located outside India. The CBI has described Mistry as an important link in the network of entities associated with the alleged PNB fraud.

The broader PNB scam came to light in 2018 and centres on alleged fraudulent Letters of Undertaking (LoUs) issued through PNB’s Brady House branch in Mumbai.

The alleged misuse of these banking instruments allowed companies linked to Nirav Modi and others to obtain credit from overseas branches of Indian banks without the required safeguards, according to the investigation.

The overall fraud involving PNB has been estimated at more than $2 billion, while the CBI’s case against Mistry specifically relates to alleged transactions involving nearly ₹6,498.20 crore.

Nirav Modi, his uncle Mehul Choksi and several other individuals have faced investigations by the CBI and Enforcement Directorate in connection with the case. The Enforcement Directorate has separately investigated alleged money-laundering aspects of the financial transactions.

Mistry’s judicial custody has been extended until October 6. The CBI did not seek his remand when he was produced before the special court on September 29.

The agency is expected to examine his alleged role in the financial transactions, his links with companies associated with Nirav Modi and the movement of funds and documents relevant to the case.

His return to India marks another development in the long-running investigation into the PNB fraud, as Indian agencies continue to pursue accused persons and financial trails across jurisdictions.

The case will now proceed through the judicial process, with investigators examining the evidence surrounding Mistry’s alleged involvement. The allegations against him remain subject to court proceedings.

 

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Leaders

CBI probes ₹1,816 cr EPFO loss linked to Anil Ambani

The Central Bureau of Investigation (CBI) has registered a case against businessman Anil Ambani and Reliance Capital Ltd (RCL) over an alleged ₹1,816.22-crore loss to the Employees’ Provident Fund Organisation (EPFO), bringing another major financial investigation involving the Reliance Anil Dhirubhai Ambani Group into focus.

The FIR, registered in Mumbai, names Reliance Capital, its former chairman Anil Ambani, unidentified public servants and other unknown persons. The CBI has alleged offences including criminal conspiracy, cheating, criminal breach of trust and criminal misconduct. The agency said the investigation will examine the role of everyone involved and trace where the money invested by EPFO ultimately went.

At the heart of the case is an investment made more than a decade ago. According to the CBI, EPFO invested ₹2,500 crore in secured non-convertible debentures (NCDs) issued by Reliance Capital during 2013 and 2014. The investment was made through four portfolio managers, including Reliance Capital Asset Management Ltd.

The debentures were scheduled to mature in 2023 and 2024. However, Reliance Capital subsequently defaulted on repayment. The CBI’s case is that fraudulent transactions and alleged diversion of funds contributed to the default, leaving EPFO with a substantial unpaid amount.

The agency has put the alleged wrongful loss at ₹1,007.55 crore, with a further ₹808.67 crore in interest liability, taking the total alleged loss to ₹1,816.22 crore.

The case originated with a complaint from EPFO, which manages retirement savings under the Employees’ Provident Fund Scheme, Pension Scheme and Deposit Linked Insurance Scheme. The organisation’s funds are held and managed by its Central Board of Trustees for the benefit of its subscribers.

The latest CBI action follows findings shared by the Enforcement Directorate (ED) with EPFO as part of a separate investigation into Reliance Capital. Based on those findings, EPFO approached the CBI with allegations concerning transactions carried out during the period when the company’s financial position was deteriorating.

Reliance Capital’s financial troubles became increasingly visible from 2019, and the company later entered the Corporate Insolvency Resolution Process (CIRP). The repayment of EPFO’s dues subsequently became part of the insolvency proceedings.

In 2021, EPFO filed its claim before the resolution professional. Following approval of the resolution plan by the National Company Law Tribunal (NCLT) in 2024, EPFO received around ₹1,492 crore against its dues.

However, a significant amount remained unpaid. The outstanding principal was about ₹1,007 crore, while interest of roughly ₹809 crore was also pending, according to the Times of India report.

The CBI is now examining whether the eventual default was simply the result of Reliance Capital’s financial difficulties or whether criminal acts contributed to the loss.

A key part of the investigation will be determining how the money raised through the NCDs was used. The agency said it will trace the end use of the invested funds and investigate the alleged conspiracy involving both private individuals and public servants.

Anil Ambani has denied any wrongdoing. A spokesperson for the businessman said the FIR relates to Reliance Capital and pointed out that Ambani had served as a non-executive director and chairman of the company’s board from 2005 until November 2021.

The spokesperson also noted that the Reserve Bank of India (RBI) superseded Reliance Capital’s board in November 2021 and appointed an administrator. Ambani, the spokesperson said, denies any wrongdoing and reserves all legal rights available to him.

The latest case adds to a series of investigations involving companies linked to the Anil Ambani group.

The CBI has previously registered cases involving Reliance Communications, Reliance Home Finance, Reliance Commercial Finance and Reliance Telecom, based on complaints from public sector banks and LIC. According to the agency, it has so far filed four chargesheets and arrested seven people in cases involving Reliance ADA Group companies.

The broader investigations have also attracted the attention of the Enforcement Directorate. In March, the ED said its investigation into Reliance Home Finance and Reliance Commercial Finance had uncovered alleged diversion of public funds through various group and intermediary entities. In July, the agency continued searches linked to the investigation and said it had seized documents and other material relating to suspected transactions and assets.

However, the EPFO investment fraud case is separate and focuses specifically on Reliance Capital’s NCDs and the alleged loss suffered by the retirement fund organisation.

For EPFO subscribers, the case is significant because it concerns money held for employees’ retirement and social-security benefits. The ₹2,500-crore investment was made years before Reliance Capital’s eventual financial collapse, but the repayment dispute has continued through insolvency proceedings and now a criminal investigation.

The CBI has not yet established guilt against the accused. Its FIR represents the beginning of the investigation, during which the agency will examine financial records, transactions, the role of company officials and the involvement, if any, of public servants.

The immediate focus will be on tracing the ₹2,500-crore EPFO investment, understanding how the funds were deployed and determining how the unpaid amount accumulated.

The investigation also comes at a time when authorities are pursuing several cases connected to the financial affairs of companies associated with Anil Ambani. The CBI said the Reliance-related investigations are being monitored by the Supreme Court and that it remains committed to conducting a comprehensive investigation.

For now, the central question is whether the EPFO loss was the result of a failed investment that followed Reliance Capital’s financial decline, or whether, as alleged by investigators, transactions and fund movements played a deliberate role in the eventual default. The CBI’s investigation is expected to shed more light on that question.

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Beyond

CBI raids officials in ₹661 cr bank fraud case

The Central Bureau of Investigation (CBI) has intensified its investigation into an alleged ₹661-crore fraud involving the diversion of government funds through IDFC First Bank and AU Small Finance Bank. As part of the probe, the agency conducted searches at six locations across Chandigarh, Panchkula and the Delhi-NCR region. The raids targeted premises linked to senior Haryana cadre officers, including IAS and IFS officials, as well as a Noida-based consultancy firm and its director.

According to investigators, funds belonging to various departments of the Haryana government and the Chandigarh Administration were allegedly diverted through a network involving bank officials, public servants and private entities. The CBI suspects that some officials received undue benefits for facilitating transactions and overlooking irregularities that enabled the movement of public money. The agency is examining whether there was a larger nexus between government officers and banking personnel.

During the searches, investigators reportedly recovered documents, digital records and financial information that could help trace the flow of funds. The CBI is also looking into a suspected benami property worth nearly ₹20 crore that is believed to be linked to a senior public servant under scrutiny in the case.

The fraud case has already led to multiple arrests and legal action. Earlier investigations resulted in charges being filed against bank officials, government employees and private individuals. The Enforcement Directorate (ED) is conducting a parallel money-laundering probe and has arrested businessman Vikram Wadhwa in connection with the case.

The alleged scam first came to light after authorities detected irregular transactions involving government deposits maintained with the banks. Subsequent investigations suggested that funds were moved through unauthorized channels and allegedly misappropriated over a period of time.

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1 Minute-Read

CBI arrests bitcoin scam accused trying to flee India

The Central Bureau of Investigation (CBI) has arrested Ayush Varshney, co-founder of Darwin Labs Pvt Ltd, while he attempted to leave for Sri Lanka.

He is the first major arrest in the GainBitcoin cryptocurrency scam, which allegedly defrauded thousands of investors of nearly ₹20,000 crore through promises of high returns via cloud-mining and MLM schemes.

Varshney was detained at Mumbai’s international airport after a Look Out Circular was issued, and the CBI continues to probe the case, tracing funds and pursuing other key suspects still at large.