New Delhi: The Directorate of Enforcement (ED), Special Task Force, has arrested Punit Garg, former Director of Reliance Communications Limited (RCOM), under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with an ongoing investigation into an alleged ₹40,000-crore bank fraud and money laundering scheme involving RCOM and its group entities.
The arrest was carried out on January 29, 2026, pursuant to an investigation initiated on the basis of a Central Bureau of Investigation (CBI) FIR dated August 21, 2025. The FIR pertains to offences under Sections 120-B, 406 and 420 of the Indian Penal Code, 1860, and Sections 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1989.
According to the ED, Punit Garg held several senior managerial and directorial positions at RCOM over a prolonged period between 2001 and 2025. He served as President handling Global Enterprise Business from 2006 to 2013, President (Regulatory Affairs) from 2014 to 2017, Executive Director from October 2017, and later as Non-Executive Director from April 2019 to April 2025.
The ED’s investigation has revealed that Garg was actively involved in the acquisition, possession, concealment, layering and diversion of Proceeds of Crime generated from the alleged bank fraud. Investigators found that large amounts of public money, obtained as bank loans by RCOM, were siphoned off through multiple foreign subsidiaries and offshore entities.
In a key finding, the ED stated that Proceeds of Crime were used to purchase a luxury condominium apartment in Manhattan, New York (USA). During RCOM’s Corporate Insolvency Resolution Process (CIRP), the property was allegedly fraudulently sold by Punit Garg, without the knowledge or consent of the Resolution Professional.
The sale proceeds amounting to US$ 8.3 million were allegedly remitted from the United States under the guise of a sham investment arrangement with a Dubai-based entity controlled by a Pakistan-linked individual, the ED said.
The investigation has further revealed that part of the Proceeds of Crime—public money borrowed by RCOM—was diverted for Punit Garg’s personal expenses, including overseas education-related payments for his children.
Punit Garg was produced before the Special Court (PMLA), Rouse Avenue Courts, New Delhi, which granted the ED nine days of custodial remand to facilitate further investigation.
The ED stated that custodial interrogation is required to trace remaining Proceeds of Crime, identify other beneficiaries, and uncover the complete money-laundering trail. Further investigation in the case is ongoing.
