ED arrests former RCOM Director Punit Garg in Rs. 40,000 crore bank fraud probe

The Directorate of Enforcement (ED), Special Task Force, has arrested Punit Garg, former Director of Reliance Communications Limited (RCOM), under the Prevention of Money Laundering Act, 2002 (PMLA) in connection with an alleged Rs, 40,000 crore bank fraud and money-laundering racket involving RCOM and its group entities.

The arrest was made on 29 January 2026, following an investigation triggered by a CBI FIR dated 21 August 2025, registered for offences under Sections 120-B, 406 and 420 of the IPC, along with Sections 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1989.

According to the ED, Punit Garg held senior managerial and directorial positions in RCOM between 2001 and 2025, including roles as President (Global Enterprise Business), President (Regulatory Affairs), Executive Director, and later Non-Executive Director. During this extended tenure, the agency alleges that he was actively involved in the acquisition, concealment, layering and diversion of proceeds of crime arising from large-scale bank loan fraud.

The investigation has revealed that the proceeds of crime were allegedly routed through multiple foreign subsidiaries and offshore entities of RCOM. A key finding relates to the purchase of a luxury condominium in Manhattan, New York, using diverted funds. The ED claims that this property was fraudulently sold during RCOM’s Corporate Insolvency Resolution Process (CIRP), without the knowledge or consent of the Resolution Professional. The sale proceeds of USD 8.3 million were allegedly remitted from the United States under the guise of a sham investment arrangement with a Dubai-based entity controlled by a Pakistan-linked individual.

The agency has further alleged that part of the diverted public funds, originally obtained as bank loans, were used to meet personal expenses, including overseas education costs of Garg’s children.

Punit Garg was produced before the Special Court (PMLA), Rouse Avenue Courts, New Delhi, which has granted the ED nine days’ custodial remand to enable further investigation. The ED stated that the remand is necessary to trace the remaining proceeds of crime, identify other beneficiaries, and fully uncover the money-laundering trail.

Further investigation is ongoing.