ED arrests former RCOM president Punit Garg in ₹40,000 crore bank fraud case

The Enforcement Directorate (ED) on Friday said it has arrested former Reliance Communications (RCOM) president and director Punit Garg in connection with an alleged ₹40,000 crore bank loan fraud and money laundering case involving companies of the Anil Ambani group.

The 61-year-old was taken into custody on Thursday, and a special Prevention of Money Laundering Act (PMLA) court in Delhi has remanded him to nine days of ED custody, the agency said in a statement.

According to the ED, Garg played a key role in the acquisition, possession, concealment and diversion of proceeds of crime generated from the alleged bank fraud committed by RCOM and its group entities.

“Garg, while holding senior managerial and directorial positions in RCOM from 2001 to 2025, was actively involved in the layering and dissipation of proceeds of crime,” the agency claimed.

The ED alleged that laundered funds were diverted through multiple foreign subsidiaries and offshore entities of RCOM. As president of the company, Garg handled its global enterprise business between 2006 and 2013 and later served as president (regulatory affairs) from 2014 to 2017. He was appointed executive director in October 2017 and later served as a non-executive director from April 2019 to April 2025.

The probe agency said part of the proceeds of crime was used to purchase a luxury condominium apartment in Manhattan , New York. The property was allegedly sold fraudulently in 2023 during RCOM’s corporate insolvency resolution process (CIRP). RCOM is understood to have informed stock exchanges about the sale in 2025.

The ED further alleged that the sale proceeds of USD 8.3 million (about ₹69.55 crore in 2023) were remitted from the United States under the guise of a sham investment arrangement with a Dubai-based entity controlled by a Pakistan-linked individual, without the knowledge or consent of the Resolution Professional.

A portion of the diverted funds was also allegedly used for Garg’s personal expenses, including overseas education-related payments for his children.

Earlier this week, the ED said it had attached shares and mutual fund investments in the name of Garg’s wife as part of the ongoing investigation.

There was no immediate response from the Reliance Group to queries on the arrest.

The case relates to an alleged diversion and laundering of bank loan funds availed by RCOM and its group companies, which the ED is probing under the Prevention of Money Laundering Act.