ED Arrests Ex-Reliance Communications Director Punit Garg in ₹40,000 Crore Money Laundering Case
NEW DELHI, January 30, 2026 – The Directorate of Enforcement (ED) Special Task Force has arrested Punit Garg, the former Director of M/s Reliance Communications Limited (RCOM), in connection with a massive bank fraud and money laundering investigation exceeding ₹40,000 crore.
Garg was taken into custody on January 29, 2026, under the Prevention of Money Laundering Act (PMLA), 2002. This enforcement action follows an investigation initially launched by the CBI in August 2025, which cited various violations of the Indian Penal Code and the Prevention of Corruption Act.The ED’s investigation highlights Garg’s long-standing influence within RCOM, where he served in several high-ranking capacities from 2001 to 2025, including President of Global Enterprise Business and Executive Director.
Authorities allege that Garg played a central role in the concealment, layering, and dissipation of proceeds of crime generated from the bank fraud. Specifically, the ED uncovered a trail of diverted funds through offshore entities, which were used to purchase a luxury condominium in Manhattan, New York. In a striking discovery, officials noted that this property was later sold for $8.3 million during RCOM’s insolvency process without the consent of the Resolution Professional, with the proceeds funneled through a sham investment arrangement involving a Dubai-based entity.
Beyond high-level corporate maneuvers, the investigation revealed that public money—originally taken as bank loans—was diverted to cover Garg’s personal expenditures, including the overseas education costs for his children. Following his arrest, Garg was produced before the Special PMLA Court at Rouse Avenue, New Delhi, which granted the ED a 9-day custodial remand.
This period will be used to further trace the remaining proceeds of crime and identify other beneficiaries involved in the money laundering network. As the ED continues its probe, more details regarding the complex financial trail are expected to emerge.