ED Arrests Ex-RCom President Punit Garg in ₹40,000-Cr Fraud Case
Punit Garg sent to nine-day ED custody in Anil Ambani group-linked money laundering probe
- ED arrests former RCom president Punit Garg
- Case linked to alleged ₹40,000-crore bank loan fraud
- Special PMLA court grants nine days of ED custody
- Funds allegedly diverted via foreign and offshore entities
GG News Bureau
Mumbai, 30th Jan: The Enforcement Directorate’s (ED) Special Task Force has arrested Punit Garg, former president of Reliance Communications (RCom), on charges of money laundering in connection with an alleged ₹40,000-crore bank loan fraud involving group companies of businessman Anil Ambani.
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. The federal probe agency stated that 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.
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, later as president (Regulatory Affairs) from 2014 to 2017, and was appointed executive director in October 2017. He later served as a non-executive director from April 2019 until April 2025.
According to the CBI FIR, the alleged offences were committed between April 2013 and March 2017, when RCom and its group entities availed large credit facilities from State Bank of India 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 lenders such as Standard Chartered and HSBC, along with several External Commercial Borrowing (ECB) lenders, were also part of the arrangement.
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).
The agency further alleged that the sale proceeds of $8.3 million were 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.
The ED also 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.
