PMLA Court Takes Cognisance Of ED Complaint Against Ex-RCom Director Puneet Garg; Rejects Bail Plea In Alleged ₹40,000-Crore Money Laundering Case

Mumbai, June 15: A special court under the Prevention of Money Laundering Act (PMLA) in Delhi has taken cognisance of a prosecution complaint filed by the Enforcement Directorate (ED) against former Reliance Communications (RCom) director Puneet Garg and another accused in connection with an alleged Rs 40,000-crore money laundering case linked to the debt-ridden telecom company. The court also rejected Garg's bail plea, holding that the material collected during the investigation prima facie pointed to Garg's involvement in the alleged laundering of funds and declined to grant him bail.

Court Takes Cognisance Of ED Complaint
Special Judge Ajay Gupta on Monday, June 15, took cognisance of the prosecution complaint against Garg and another accused and posted the matter for arguments on charge on July 4. The complaint had been filed before the Special PMLA Court on March 27.

Bail Plea Rejected By Court
While rejecting the bail plea, the court noted that the ED had placed material on record alleging Garg's role in the movement and concealment of proceeds of crime arising from the suspected bank fraud. The court observed that Garg had held key managerial and board-level positions in RCom during the relevant period and that the allegations against him related to the acquisition, possession, concealment, layering and dissipation of the alleged proceeds of crime. The court held that the accused had failed to demonstrate reasonable grounds to believe that he was not guilty of the offence and was unlikely to commit any offence while on bail, as required under Section 45 of the PMLA.

Findings On Role And Assets
According to the order, while Garg may not have been directly involved in the original acquisition of certain overseas assets, there was prima facie material indicating his involvement in their subsequent disposal and in handling the proceeds generated from their sale. The court also took note of the ED's allegations that assets allegedly acquired using proceeds of crime were concealed during insolvency proceedings and later projected as untainted properties.

Garg's interim bail plea on medical grounds had earlier been rejected in April. He was arrested by the ED on January 29 and continues to remain in judicial custody.

ED Allegations And Corporate Roles
According to the complaint, Garg held several senior management and board-level positions in Reliance Communications (R-Com) over nearly two decades. He served as President of the company's Global Enterprise Business between 2006 and 2013, President (Regulatory Affairs) from 2014 to 2017, Executive Director from October 2017 and subsequently Non-Executive Director until April 2025 and played an active role in the alleged laundering of funds generated through the purported bank fraud involving the company.

The ED's case is based on allegations that proceeds of crime were diverted and routed through a network of domestic and overseas entities linked to RCom, with investigators claiming that Garg was involved in the movement and concealment of these funds over an extended period while holding key positions in the company.

The money laundering investigation stems from a CBI case alleging criminal conspiracy, cheating, criminal breach of trust and corruption in relation to loans extended to Reliance group companies.

Alleged Use Of Overseas Assets
The ED has alleged that proceeds of crime generated from the alleged bank fraud were routed through a network of foreign subsidiaries and offshore entities linked to RCom. According to the agency, part of the allegedly diverted funds was used to acquire a luxury yacht named “TIAN”, held through a company incorporated in the Bailiwick of Jersey, United Kingdom, and a luxury condominium apartment in Manhattan, New York.

The ED further alleged that rental income generated from the Manhattan condominium apartment was received and utilised by Garg and his family members, constituting continued use and enjoyment of tainted assets.

Alleged Sale During Insolvency Process
The agency has also alleged that both the yacht and the Manhattan apartment were sold during the Corporate Insolvency Resolution Process (CIRP) of Reliance Anil Ambani Group companies without disclosure to stakeholders. According to the ED, the sale proceeds were subsequently siphoned off rather than being restituted to creditors and other legitimate claimants.

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Reliance Anil Dhirubhai Ambani Group (Reliance ADA Group) did not respond to queries seeking its comments on the ED's allegations and the prosecution complaint till the time of publication.

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