The Bombay High Court has granted bail to Vishwanath Devaraja Rao, who was arrested in a Central Bureau of Investigation (CBI) case concerning alleged irregularities in the sanction, disbursement and utilisation of bank credit facilities involving the Reliance Communications group.
Justice Milind N. Jadhav passed the order in Bail Application No. 3030 of 2026 after considering the submissions of both sides and the material placed on record.
Background of the Case
Rao was arraigned as Accused No. 2 in the charge-sheet filed on May 29, 2026. The case relates to FIR No. RCBD1/2025/E/0005 registered by the CBI’s Bank Securities and Fraud Branch, New Delhi.
The allegations relate to the period between April 1, 2013 and March 31, 2017. The CBI alleged that credit facilities were obtained from a consortium of lenders through misrepresentation and suppression of material facts and that the borrowed funds were subsequently routed through various transactions.
Rao had worked as Senior Vice President/Joint President of the Reliance Communications group and was involved in corporate finance operations. The prosecution relied, among other things, on banking records, internal communications, transaction trails and witness statements to allege his involvement in the transactions.
Court’s Observation
The High Court noted that the first set of allegations concerned the alleged misrepresentation and suppression used to obtain credit facilities. However, the Court found that no specific overt act by Rao was prima facie shown in relation to that allegation.
The Court observed:
“No such overt act attributed to the Applicant is prima facie shown to Court. No direct evidence of any overt act is either shown to Court or directly attributed to the Applicant.”
Regarding the second allegation, involving the alleged diversion and routing of loan funds, the Court said that the prosecution would have to demonstrate Rao’s specific role, knowledge and motive rather than rely on general allegations.
The Court also took note of the fact that no recovery had been made from Rao and that the prosecution did not claim that he was a beneficiary of the funds. It further noted that the investigation had been completed and the charge-sheet had already been filed.
The Court also considered that Rao had cooperated with the investigation when called for questioning. His age and other circumstances were taken into account while considering the bail request.
Decision
Justice Milind N. Jadhav allowed the bail application and directed Rao’s release from custody in connection with the CBI case.
The Court ordered him to furnish a personal recognisance bond of Rs. 1 lakh with one or two sureties of the same amount. He was also directed to report to the investigating officer once every month, cooperate with the trial, remain within Maharashtra without prior permission, and refrain from influencing witnesses or tampering with evidence.
The Court clarified that its observations were only prima facie findings for deciding bail and would not affect the trial, which would have to be decided independently on the evidence led before it.
Case Details
Case Title: Vishwanath Devaraja Rao v. Central Bureau of Investigation (Bank Securities and Fraud Branch, New Delhi) & Anr.
Case Number: Bail Application No. 3030 of 2026
Judge: Justice Milind N. Jadhav
Decision Date: August 25, 2026
