On Thursday, January 29, 2026, the Enforcement Directorate (ED) arrested former director and president Punit Garg during its money-laundering probe into the now defunct Reliance Communications (RCOM). The arrest is related to an alleged bank loan fraud exceeding ₹40,000 crore involving group companies led by businessman Anil Ambani.
Custody and Charges
61-year-old Garg was remanded to nine days of ED custody by a special court under the Prevention of Money Laundering Act (PMLA). The central agency is investigating Garg’s participation in the acquisition, possession, concealment, and dissipation of proceeds of crime that arose from the massive bank fraud. The investigation comes amid an FIR filed by the Central Bureau of Investigation (CBI) on August 21, 2025.
Key Allegations: Luxury Real Estate & Offshore Trails
The ED’s inquiry has exposed a complicated scheme of financial irregularities that Garg supposedly managed during his long tenure at the company (2001–2025):
- Manhattan Luxury Condo: Investigators said proceeds were diverted to buy a luxury condominium in Manhattan, New York. This property was reportedly sold "fraudulently" by Garg for $8.3 million (approx. ₹69.5 crore) during RCOM's insolvency process.
- Dubai-Pakistan Link: The sale proceeds from the New York property were allegedly remitted from the U.S. through a "sham investment arrangement" with a Dubai-based entity controlled by an individual with Pakistani connections.
- Personal Use of Public Funds: The agency alleged that part of the bank loans public money was appropriated for Garg's personal expenses, such as the overseas education fees for his children.
- Shell Entity Layering: Funds were layered with foreign subsidiaries as well as siphoned off via multiple offshore entities to escape scrutiny, ED alleges.
The Wider Net
The arrest comes after provisional attachment of assets amounting to ₹1,885 crore, including shares and mutual funds held in the name of Garg’s wife, earlier this week. Total asset attachments in this case have now reached approximately ₹12,000 crore. The ED is expected to soon summon Anil Ambani for questioning. It is an indication of whether loan amounts used to support the promoter family had actually been siphoned off.
