The Enforcement Directorate (ED), through its Special Task Force, has arrested Punit Garg, former Director of Reliance Communications Limited (RCom), in connection with an ongoing investigation into a bank fraud and money laundering case involving more than ₹1,190 crore.
The arrest was carried out on January 20, 2026, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, following extensive investigation into the diversion and laundering of proceeds of crime allegedly generated through large-scale banking fraud by RCom and its associated entities.
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CBI FIR formed the basis of ED probe
The ED action follows a case registered earlier by the Central Bureau of Investigation (CBI). The CBI had lodged an FIR on September 21, 2025, bearing RC No. R87/2025/9005, under Sections 120-B, 406 and 420 of the Indian Penal Code and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act.
The FIR pertains to alleged criminal conspiracy, cheating, criminal breach of trust and corruption in relation to massive loan defaults and diversion of public funds availed by RCom from banks and financial institutions.
Senior managerial roles at RCom
According to the ED, Punit Garg held several key managerial and directorial positions at RCom between 2000 and 2025. During this period, he played a significant role in the company’s global enterprise business and strategic decision-making.
Records show that Garg served as a key executive overseeing RCom’s global enterprise operations from 2000 to 2013. Subsequently, he worked as Chairman (Regulatory Affairs) from 2014 to 2017. In October 2017, he was appointed Executive Director of RCom, after which he continued as Non-Executive Director from April 2018 to April 2025.
Active role in laundering of proceeds of crime
ED investigations have revealed that while holding senior management and board-level positions, Garg was actively involved in the acquisition, possession, concealment, layering and diversion of proceeds of crime generated from the alleged bank fraud.
The agency found that substantial amounts of illicit funds were diverted through multiple overseas subsidiary companies and offshore entities controlled by RCom.
Luxury property purchased in New York
One of the key findings of the probe relates to the diversion of proceeds of crime for the purchase of a luxury condominium apartment in Manhattan, New York (USA). ED officials stated that the property was acquired using laundered funds routed through foreign entities.
During the Corporate Insolvency Resolution Process (CIRP) of RCom, Garg allegedly fraudulently sold the said property. The sale proceeds, amounting to approximately USD 5.3 million, were transferred without the knowledge or consent of the Resolution Professional.
The ED further alleged that the amount was remitted from the United States under the guise of a sham investment arrangement to a Dubai-based entity controlled by a Pakistan-linked individual.
Public funds used for personal expenses
The investigation has also uncovered that a portion of the proceeds of crime — which originated from public money obtained by RCom as bank loans — was allegedly diverted by Garg for personal expenditure.
This included payments related to the overseas education expenses of his children, indicating misuse of bank funds for private purposes, the ED stated.
Produced before PMLA court
Following his arrest, Punit Garg was produced before the Special Court (PMLA), Rouse Avenue Courts, New Delhi. The court granted the ED custodial remand to facilitate further investigation.
The agency informed the court that custodial interrogation was required to trace the remaining proceeds of crime, identify other beneficiaries, and uncover the complete money-laundering network involved in the case.
Further investigation underway
The ED has stated that the investigation into the case is ongoing, and further action under the provisions of the PMLA will be taken based on additional evidence that may emerge.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
