The Enforcement Directorate’s Special Task Force on Thursday arrested Punit Garg, former Director of Reliance Communications Limited (RCOM), on January 29, 2026, under the Prevention of Money Laundering Act, 2002, in connection with an ongoing investigation into an alleged bank fraud and money laundering case involving more than Rs 40,000 crore linked to RCOM and its group entities.
The arrest follows an investigation initiated based on a CBI FIR dated August 21, 2025, registered under Sections 120B, 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.
Garg held several senior positions at RCOM over the years. He served as President handling the Global Enterprise Business from 2006 to 2013, and later as President for Regulatory Affairs from 2014 to 2017. In October 2017, he was appointed Executive Director of RCOM, and from April 2019 to April 2025, he served as a non-executive director.
What ED found in its probe
According to the ED, its investigation has revealed that Garg, while holding senior managerial and directorial roles at RCOM between 2001 and 2025, was actively involved in the acquisition, possession, concealment, layering and dissipation of proceeds of crime generated from the alleged bank fraud.
The agency said the proceeds of crime were diverted through multiple foreign subsidiaries and offshore entities of RCOM. It was found that part of the funds was used to purchase a luxury condominium apartment in Manhattan, New York, in the United States.
The ED alleged that this property was fraudulently sold during RCOM’s Corporate Insolvency Resolution Process by Garg. The sale proceeds amounting to USD 8.3 million were allegedly remitted from the US 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 also found that a portion of the proceeds of crime, described as public money obtained by RCOM through bank loans, was diverted for Garg’s personal expenses, including overseas education-related payments for his children.
Garg was produced before the Special Court under the PMLA at Rouse Avenue Courts in New Delhi, which granted the ED custodial remand of 9 days. The agency said further investigation is underway to trace the remaining proceeds of crime, identify other beneficiaries, and uncover the complete money laundering trail.
