New Delhi, June 18: A court in Dwarka has ordered former Reliance Group official Satish Seth to be held in judicial custody for 14 days. This decision comes as part of an ongoing investigation by the Enforcement Directorate (ED) into a money laundering case.
Seth, a close associate of businessman Anil Ambani and the former Group Managing Director of Reliance Group, was brought to Delhi from Mumbai under transit remand following his arrest.
The court’s ruling arrives just before Seth’s custody was set to expire on June 19. The ED had previously arrested Seth and former Reliance Telecom director Gautam Doshy under the Prevention of Money Laundering Act (PMLA) in connection with an alleged bank loan fraud case.
This money laundering investigation is linked to a Central Bureau of Investigation (CBI) case involving a reported loan fraud of ₹114.98 crores between Reliance Telecom Limited and the State Bank of India (SBI).
According to the CBI, a case was registered against Seth, Doshy, and Reliance Telecom Limited for criminal conspiracy and fraud related to the alleged financial misconduct. The central agency has also invoked provisions of the Prevention of Corruption Act against unidentified government officials and others involved.
SBI’s complaint alleges that the accused companies and individuals caused a wrongful loss of ₹114.98 crores to the bank, which was part of a consortium of 11 banks that approved a term loan of ₹735 crores to Reliance Telecom Limited.
It is believed that the ED is investigating the alleged diversion and misuse of loan funds involving Seth and Doshy, following the CBI’s FIR.
After the case was registered in March, the CBI conducted searches at multiple locations in Mumbai, including the residences of Seth and Doshy, as well as the registered office of Reliance Telecom Limited. Documents related to loan transactions and financial dealings were seized during these searches.
This latest development comes amid several investigations into alleged financial irregularities involving companies associated with the Reliance Group. Earlier this month, the CBI arrested Amitabh Jhunjhunwala, the former Group Managing Director of Reliance Communications, in a case involving an alleged loan fraud of ₹2,929.05 crores.
Meanwhile, a spokesperson for the Reliance Group stated that 70-year-old Seth and 73-year-old Doshy are no longer affiliated with the group.
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