Mumbai, Jan 30: The Enforcement Directorate’s (ED) Special Task Force on Thursday arrested Punit Garg, former president of Reliance Communications (RCom), on charges of money laundering in connection with an alleged Rs 40,000-crore bank loan fraud involving group companies of businessman Anil Ambani.
Nine days’ ED custody
Garg was produced before a special PMLA court at Rouse Avenue Court in Delhi, which remanded him to nine days of ED custody, officials said.
Probe linked to CBI FIR
According to the federal probe agency, the case relates to the alleged diversion and laundering of funds by RCom and its group entities. The arrest followed an investigation initiated on the basis of a CBI FIR registered on August 21, 2025, for offences under Sections 120B (criminal conspiracy), 406 (criminal breach of trust) and 420 (cheating) of the IPC, along with provisions of the Prevention of Corruption Act.
The ED alleged that Garg was involved in the acquisition, concealment, layering and diversion of “proceeds of crime” generated through the alleged bank fraud.
Key roles held in RCom
Garg held several key positions in RCom over nearly two decades. He served as president handling the company’s Global Enterprise Business between 2006 and 2013, and later as president (Regulatory Affairs) from 2014 to 2017.
In October 2017, he was appointed executive director of RCom, and subsequently served as a non-executive director from April 2019 until April 2025.
Alleged loan diversion
The CBI FIR states that the alleged offences were committed between April 2013 and March 2017, during which RCom and its group entities availed large credit facilities from State Bank of India (SBI) under a consortium and multiple banking arrangements, while allegedly diverting funds in violation of sanction terms.
Other lenders in the consortium included Bank of Baroda, Punjab National Bank, Union Bank of India, Canara Bank, IDBI Bank, Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of India, Corporation Bank and Syndicate Bank. Private sector lenders such as Standard Chartered and HSBC, along with several External Commercial Borrowing (ECB) lenders, were also part of the lending arrangement, officials said.
Funds allegedly routed overseas
The ED claimed that the funds were routed through multiple foreign subsidiaries and offshore entities of RCom. A portion of the proceeds was allegedly used to purchase a luxury condominium apartment in Manhattan, New York.
The property was later sold during RCom’s Corporate Insolvency Resolution Process (CIRP), and the sale proceeds of $8.3 million were allegedly remitted to India under the guise of a sham investment arrangement involving a Dubai-based entity controlled by a Pakistan-linked individual, without the knowledge or consent of the resolution professional.
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Personal expenses cited
The agency further alleged that part of the diverted funds, originating from public sector bank loans, was used for Garg’s personal expenses, including overseas education payments for his children.
There was no immediate comment from the Anil Ambani-led Reliance Group on the development.
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