India, July 5 -- A special court on Saturday permitted Central Bureau of Investigation (CBI) to formally arrest Amit Bapna, former chief financial officer of Reliance Capital Ltd (RCL), in its probe into the alleged diversion of bank loans by Reliance Anil Dhirubhai Ambani Group companies, and remanded him to four days' CBI custody.

Bapna, who is already in judicial custody in a related Enforcement Directorate (ED) money laundering case and was brought from Tihar Jail on a production warrant, was arrested in court after the judge allowed the agency's application seeking permission to effect his formal arrest.

Seeking remand, the investigating agency alleged that complaints from 31 banks and financial institutions revealed that about Rs....