The Enforcement Directorate on Friday announced the arrest of former Reliance Communications (RCOM) president Punit Garg on money-laundering charges in the Rs 40,000 crore bank loan fraud against Anil Ambani group of companies.
According to reports from PTI and IANS, Garg was taken into custody on Thursday and has been sent to nine days of ED custody by a special PMLA (Prevention of money laundering) court in Delhi as of January 30, 2026.
The investigation centers on the alleged “fraudulent diversion” of public money by RCom and other group entities under the leadership of Anil Ambani.
Who is Punit Garg? The strategist behind Reliance empire
Punit Garg has been a pivotal figure in the Reliance Group’s senior management for over two decades. An engineer by training, Garg joined the group in 2001 and rose through the ranks to lead some of its most critical divisions.
He served as the President of RCom’s Global Enterprise Business between 2006 and 2013 and later transitioned to President of regulatory affairs.
Beyond telecom, Garg held high-ranking positions across the conglomerate, including serving as the Executive Director and CEO of Reliance Infrastructure Ltd and a board member for Reliance Power.
According to media reports, Garg was instrumental in managing RCom’s international subsidiaries and offshore entities, which are now the focal point of the ED’s money-laundering probe.
The Allegations: Luxury Condos, shell companies, and offshore siphoning
The ED alleges that during his tenure, Garg was actively involved in the ‘acquisition, possession, and layering’ of proceeds from the bank fraud. The agency’s investigation suggests a complex web of financial irregularities:
The ED claims Garg siphoned off funds to a Dubai-based entity and fraudulently sold an $8.3 million luxury condominium in Manhattan, New York, diverting the proceeds.
As per an India Today report, investigators also found that part of the diverted loan funds described as public money borrowed by RCOM from banks was allegedly used for Garg’s personal expenditures.
These included overseas education-related payments for his children, the ED said.
Investigating authorities allege that RCom and its subsidiaries diverted over Rs 13,600 crore for “evergreening” of loans and transferred another Rs 12,600 crore to related parties through shell entities.
The Yes Bank link
The probe also explores a “circuitous route” where public money from mutual funds was allegedly routed through Yes Bank into Anil Ambani group companies to bypass SEBI conflict-of-interest norms.
The investigation into the RCOM-linked bank fraud and overseas diversion of funds remains ongoing, with the ED expected to continue examining financial transactions, offshore structures, and individuals connected to the case.
Earlier this week, the ED provisionally attached assets worth Rs 1,885 crore linked to the group, including shares held in the name of Garg’s wife, bringing total attachments in this case to approximately Rs 12,000 crore.