Ex-Reliance Communications Director Punit Garg Arrested In Rs 40,000 Crore Bank Fraud Case

New Delhi: The Enforcement Directorate (ED) on Friday arrested Punit Garg, ex-Director of Reliance Communications ( RCOM ) Limited, in connection with the ongoing investigation relating to over Rs 40,000 Crore bank fraud and money laundering.

ED's Special Task Force arrested Punit Garg on Friday on CBI's FIR for offences under Sections 120-B, 406 and 420 of the Indian Penal Code, 1860, and Sections 13(2) read with section 13(1)(d) of the Prevention of Corruption Act, 1989, the probe agency said in a statement.

The ED said the case relates to the "diversion and laundering of funds by RCOM and its group entities."

Punit Garg served as President of RCOM, handling the Global Enterprise Business of RCOM from 2006 to 2013. Thereafter, he served as President (Regulatory Affairs) from 2014 to 2017. Subsequently, in October 2017, he was appointed as Executive Director of RCOM. Thereafter, from April 2019 till April 2025, he served as non-Executive Director of RCOM, the ED said in the statement.

ED investigation has revealed that Punit Garg, while holding senior managerial and directorial positions in RCOM over an extended period from 2001 to 2025, was actively involved in the acquisition, possession, concealment, layering, and dissipation of Proceeds of Crime generated from the said bank fraud.

It has been found that Proceeds of Crime were diverted through multiple foreign subsidiaries and offshore entities of RCOM. In particular, it was 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 ED said.

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 investigation has further revealed that part of the Proceeds of Crime - public money taken by RCOM as bank loans was diverted for Punit Garg's personal expenses, including overseas education-related payments of his children.

Punit Garg was produced before the Special Court (PMLA), Rouse Avenue Courts, New Delhi, and ED has been granted his custodial remand for 9 days for further investigation to trace the remaining Proceeds of Crime, identify other beneficiaries, and uncover the complete money-laundering trail, ED said.

Further investigation is under progress.