ED Arrests Former Reliance Communications Director Punit Garg
ED has arrested former Reliance Communications Limited Director Punit Garg in a ₹40,000-Crore bank loan fraud case.
The Enforcement Directorate (ED) has arrested Punit Garg, a former director of Reliance Communications Limited (RCOM), in connection with an alleged ₹40,000-crore bank loan fraud and money-laundering investigation linked to the company and its group entities.
The arrest was carried out on Thursday, January 29, 2026, by the ED’s Special Task Force. Garg was produced before a special court in New Delhi, which remanded him to ED custody for nine days to facilitate further investigation.
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The money-laundering probe originates from a First Information Report registered by the Central Bureau of Investigation (CBI) under provisions of the Indian Penal Code and the Prevention of Corruption Act. RCOM was previously part of the Anil Ambani-led Reliance Group.
According to the agency, Garg held multiple senior positions at Reliance Communications Limited over nearly two decades. He served as President overseeing the company’s global enterprise business between 2006 and 2013, later as president (regulatory affairs) from 2014 to 2017, and was appointed executive director in October 2017. From April 2019 to April 2025, he functioned as a non-executive Director of the company.
The ED has alleged that Garg played a role in the acquisition, possession, concealment, layering and dissipation of proceeds of crime generated from the alleged bank loan fraud. These funds were allegedly routed through multiple foreign subsidiaries and offshore entities associated with RCOM.
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One transaction under scrutiny involves the alleged diversion of funds for the purchase of a luxury condominium apartment in Manhattan, New York. During the Corporate Insolvency Resolution Process (CIRP) of RCOM, the property was allegedly sold without authorisation. The sale proceeds, estimated at $8.3 million, were reportedly transferred from the United States under the cover of an investment arrangement involving a Dubai-based entity controlled by a Pakistan-linked individual, without the knowledge or consent of the resolution professional.
ED has also flagged alleged diversion of funds for personal expenditures, including payments related to the overseas education of Garg’s children.
The ED has stated that custodial interrogation is required to trace the remaining proceeds of crime, identify other beneficiaries, and establish the full scope of the alleged money-laundering network. Further investigation in the case is ongoing.
