New Delhi: The Enforcement Directorate’s Special Task Force has taken significant action in a major bank fraud and money laundering case linked to Reliance Communications Limited (RCom) by arresting the company’s former director, Puneet Garg. The arrest has been made under the Prevention of Money Laundering Act (PMLA), 2002.
According to the ED, the case involves alleged bank fraud and related money laundering exceeding ₹40,000 crore by RCom and its group entities. The investigation was initiated based on a First Information Report filed by the Central Bureau of Investigation on August 21, 2025.
The ED’s probe revealed that Puneet Garg played an active role in acquiring, possessing, concealing, layering, and spending proceeds of crime derived from the bank fraud while holding various senior management and director positions at RCom between 2001 and 2025.
Puneet Garg served as President of RCom from 2006 to 2013, overseeing the company’s global enterprise business. He then held the position of President (Regulatory Affairs) from 2014 to 2017. In October 2017, he was appointed Executive Director and later served as Non-Executive Director from April 2019 to April 2025.
The investigation indicated that illicit funds were diverted through several foreign subsidiaries and offshore entities of RCom. The ED specifically disclosed that some of this illegal money was used to purchase a luxury condominium apartment in Manhattan, New York City. This property was allegedly fraudulently sold by Puneet Garg during RCom’s Corporate Insolvency Resolution Process (CIRP).
Further, the ED stated that the approximately $8.3 million proceeds from the sale of this property were transferred out of the US under the guise of a fake investment scheme, reportedly controlled by an individual linked to Pakistan.
Notably, this entire transaction was carried out without the knowledge or approval of the resolution professional. The probe also revealed that public funds taken as bank loans, which form part of the proceeds of crime, were used by Puneet Garg for personal expenses, including payments related to his children’s overseas education.
Following his arrest, Puneet Garg was produced before the Special Court (PMLA) at Rouse Avenue Courts in New Delhi. The court granted the ED nine days of custody remand for further investigation. During this period, the agency aims to identify the remaining proceeds of crime, other beneficiaries, and expose the full network and channels of money laundering.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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