ED Arrests Ex-Reliance Com Director in Rs 40,000 Crore Alleged Bank Fraud Case

New Delhi: The Enforcement Directorate (ED) has arrested Punit Garg, a former director at Reliance Communications (RCOM) in an alleged bank fraud case. Based on the complaint from public sector banks, the Central Bureau of Investigation (CBI) registered a case against the now defunct RCOM, its founder Anil Ambani and others for allegedly defrauding banks of over 40,000 crore in 2025.

Taking cognisance of the first information report registered by CBI, the ED has launched a money laundering investigation under the Prevention of Money Laundering Act, 2002 against Garg.

Garg, a senior executive at RCOM, had also served as president of the company, handling its global enterprise business. He was summoned for questioning today by the central agency. After a day-long questioning, the agency arrested Garg. It has accused him of involvement “in the acquisition, possession, concealment, layering and dissipation of proceeds of crime generated from the said bank fraud.”

The ED said in a statement: “... investigation has found that proceeds of crime were diverted for the purchase of a luxury condominium apartment in Manhattan, New York, United States of America (USA). This property was sold during the Corporate Insolvency Resolution Process (CIRP) of RCOM fraudulently by Punit Garg. The sale proceeds of USD 8.3 million were remitted from the USA 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.”

The central agency has also accused Garg of diverting bank loans availed by RCOM for his personal expenses, including overseas education-related payments of his children. Sources say, upon arrest, Garg was produced before a court in the national capital and the central agency took him into custody for nine days for further questioning in the case.

Sources further added, “Based on the statement of Punit Garg, Anil Ambani [is also] to be questioned. Investigation has also revealed that the loans were diverted for the personal expenses of Anil Ambani and his family.”

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