The Enforcement Directorate (ED) has arrested Amitabh Jhunjhunwala and Amit Bapna in connection with an ongoing money laundering investigation under the Prevention of Money Laundering Act (PMLA) involving entities linked to the Anil Dhirubhai Ambani Group (ADAG). The arrests form part of a broader probe into alleged financial irregularities associated with Reliance Group-linked firms.
Former Senior Executives Taken Into Custody
According to officials familiar with the matter, both Jhunjhunwala and Bapna were former senior executives associated with the Reliance Group and were taken into custody by the ED on Wednesday.
Jhunjhunwala had previously served as vice-chairman of Reliance Capital Ltd and is alleged to have played a significant role in decision-making related to Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL). Authorities believe his position gave him oversight into several operational and financial matters now under investigation.
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Probe Focuses on Alleged Fund Diversion
The arrests are linked to allegations surrounding diversion of funds and suspected financial misconduct involving companies within the ADAG ecosystem.
Investigators are reportedly examining the movement of money through various group entities and whether funds were improperly routed or misused. The ED’s investigation is based on multiple Enforcement Case Information Reports (ECIRs), which were registered following predicate offences investigated by the Central Bureau of Investigation (CBI).
Wider Investigations Into Reliance-Linked Financial Cases
The development comes amid multiple investigations involving firms linked to industrialist Anil Ambani.
Earlier this month, the CBI registered a separate case against Reliance Communications Ltd (RCom), Anil Ambani, and others over allegations of causing wrongful loss of ₹3,750 crore to Life Insurance Corporation (LIC) of India. The complaint alleged that LIC was induced to subscribe to non-convertible debentures worth ₹4,500 crore based on alleged false representations regarding the company’s financial health and asset cover.
In addition, agencies have been probing separate allegations relating to bank fraud and loan defaults involving Reliance Group companies.
ED Seeks Further Interrogation
Following the arrests, the ED produced Jhunjhunwala before a special court and sought remand for further questioning as part of the ongoing investigation.
Officials have not yet publicly disclosed the exact allegations against Bapna, but both individuals are expected to be questioned further regarding their alleged involvement in financial decisions and transactions under scrutiny. The investigation remains active, with authorities continuing to examine documentary and financial evidence linked to the case.
