ED Arrests Former Reliance Communications Director Punit Garg in ₹40,000 Crore Bank Fraud Probe

The Directorate of Enforcement (ED), Special Task Force, has arrested Punit Garg, former Director of Reliance Communications Limited (RCOM), for offences under the Prevention of Money Laundering Act, 2002 (PMLA), in connection with an ongoing investigation into an alleged ₹40,000 crore bank fraud and money laundering case involving RCOM and its group entities. According to an official press release issued on 30.01.2026, Punit Garg was arrested on 29.01.2026 following an investigation initiated on the basis of a CBI FIR dated 21.08.2025.

The official was registered for offences punishable under Sections 120-B, 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, alleging generation and laundering of proceeds of crime arising from large-scale bank fraud by Reliance Communications Limited and its group entities.

During the course of investigation, it was found that Punit Garg has served as President of RCOM, handling the Global Enterprise Business, from 2006-2013, and thereafter as President (Regulatory Affairs) from 2014-2017. In October 2017, he was appointed as Executive Director of RCOM and subsequently served as a Non-Executive Director from April 2019-April 2025. Concurrently, he was actively involved in the acquisition, possession, concealment, layering, and dissipation of proceeds of crime generated from the said bank fraud.

Further, revealed that the proceeds of crime were diverted through multiple foreign subsidiaries and offshore entities of RCOM. In particular, the purchase of a luxury condominium apartment in Manhattan, New York, United States of America, was made using the proceeds of crime. Afterwards, the property was sold during RCOM's Corporate Insolvency Resolution Process (CIRP), allegedly fraudulently by Punit Garg, without the knowledge or consent of the Resolution Professional.

The ED has alleged that the sale proceeds amounting to USD 8.3 million were remitted from the United States through a sham investment arrangement with a Dubai-based entity controlled by a Pakistan-linked individual, thereby obscuring the money trail. Subsequently, parts of the proceeds of crime described as public money obtained by RCOM through bank loans were diverted to Punit Garg’s personal expenses, including overseas education-related payments for his children.

Following his arrest, Punit Garg was produced before the Special Court (PMLA) at the Rouse Avenue Courts, New Delhi, which granted a nine-day custodial remand to the ED to enable further investigation to trace the remaining proceeds of crime, identify other beneficiaries, and uncover the complete money laundering trail.