New Delhi. In a key development in the ongoing money laundering investigation linked to alleged financial irregularities in the Reliance Group ecosystem, a Delhi court on Saturday extended the judicial custody of two former senior officials—Amitabh Jhunjhunwala and Amit Bapna—till May 15. The order came in connection with a probe being conducted under the Prevention of Money Laundering Act (PMLA), centered around Reliance Home Finance Limited (RHFL).
Court Allows ED Plea, Extends Judicial Custody Till May 15
The court, hearing the matter at the Rouse Avenue premises, allowed the Enforcement Directorate’s request for continued custody. Both accused were produced before the court after the expiry of their earlier judicial remand. Due to health concerns, Jhunjhunwala was produced via video conferencing from jail, and the court directed the prison authorities to submit a detailed medical report on his condition.
Jhunjhunwala and Bapna were arrested by the Enforcement Directorate in an ongoing investigation that stems from multiple Enforcement Case Information Reports (ECIRs). These ECIRs were registered based on underlying cases originally filed by the Central Bureau of Investigation (CBI), which had flagged alleged irregularities in loan disbursals and financial management within group entities.
FCRF Academy Launches Premier Anti-Money Laundering Certification Program
RHFL and RCFL Loan Trails Under Money Laundering Scanner
According to investigators, the case relates to alleged misuse and diversion of bank loans involving Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL). The probe suggests that funds raised from financial institutions were allegedly routed in a manner inconsistent with lending norms, raising concerns of possible laundering of proceeds of crime.
Officials allege that Amitabh Jhunjhunwala, who previously held senior leadership positions in the group, played a key role in strategic financial decisions during the period under scrutiny. He had served as Group Managing Director and also held positions at Reliance Capital, RHFL, and related entities, where key decisions on financial structuring and fund deployment were reportedly made.
Similarly, Amit Bapna, who served as Chief Financial Officer of Reliance Capital and Director of RHFL, is also under the scanner for his alleged involvement in financial decision-making processes now under investigation. Agencies are examining whether proper lending protocols were followed and whether due diligence was bypassed in certain transactions.
Investigators Probe Approvals, Fund Flow and Internal Financial Decisions
The Enforcement Directorate maintains that the arrests were made after uncovering evidence suggesting potential laundering of funds linked to the suspected diversion of loan amounts. The agency is further examining financial records, internal approvals, and transaction trails to map the flow of funds across group entities.
Earlier, the Central Bureau of Investigation had registered a case against Reliance Communications Limited (RCom), Anil Ambani, and others, alleging wrongful loss to financial institutions, including Life Insurance Corporation of India, amounting to several thousand crore rupees. This broader financial probe has since led to multiple parallel investigations by different agencies.
Reliance Group Says Both Officials Exited Companies in 2019
In response to the ongoing proceedings, the Reliance Group has stated that both Jhunjhunwala and Bapna are no longer associated with its companies. According to the group’s statement, Jhunjhunwala exited in December 2019, and Bapna in September 2019, and neither currently holds any position in group firms, including Reliance Infrastructure Limited or Reliance Power Limited.
The judicial extension of custody comes as investigators continue to gather documentary and digital evidence in the case. Authorities are also reviewing banking transactions, loan approvals, and intercompany fund movements to determine the extent of the alleged irregularities.
Legal experts note that cases under the PMLA often require prolonged custody and detailed financial tracing, especially when multiple corporate entities and large loan portfolios are involved. The complexity increases when funds are routed through layered financial structures and related-party transactions.
With the custody extended, interrogation of both accused is expected to continue, focusing on decision-making processes, financial approvals, and internal compliance mechanisms within the group’s financial arms.
Investigators are also examining whether external consultants or intermediaries played any role in structuring the transactions now under scrutiny. The outcome of these inquiries is expected to play a crucial role in shaping the case’s direction in the coming weeks.
