3 min readNew DelhiJan 31, 2026 05:13 AM IST
The Enforcement Directorate (ED) on Friday said it has arrested former director of Reliance Communications Limited (RCOM) Punit Garg on charges of money laundering in an alleged Rs 40,000-crore bank fraud by the telecom firm and its group entities.
The arrest follows a CBI FIR registered on August 21 alleging offences under Sections 120-B (criminal conspiracy), 406 (criminal breach of trust), and 420 (cheating) of the Indian Penal Code, along with provisions of the Prevention of Corruption Act.
“The arrested man was identified as Punit Garg, who served as President of RCOM, handling the Global Enterprise Business of RCOM from 2006 to 2013. Later, he served as President (Regulatory Affairs) from 2014 to 2017. Subsequently, in October 2017, he was appointed as Executive Director of RCOM. Thereafter, from April 2019 till April 2025, he served as non-Executive Director of RCOM,” an ED spokesperson said in a statement.
Garg was arrested on Thursday evening and produced before the special court (PMLA) at Rouse Avenue Courts on Friday. The court sent him to nine-day ED custody for further investigation to trace the remaining proceeds of crime, identify other beneficiaries, and uncover the complete money-laundering trail.
“ED investigation has revealed that Garg, while holding senior managerial and directorial positions in RCOM over an extended period from 2001 to 2025, was actively involved in the acquisition, possession, concealment, layering and dissipation of Proceeds of Crime generated from the bank fraud,” the spokesperson said.
“It has been found during investigations that proceeds of crime were diverted through multiple foreign subsidiaries and offshore entities of RCOM. In particular, the proceeds of crime were diverted for the purchase of a luxury condominium apartment in Manhattan, New York, United States. This property was sold during the Corporate Insolvency Resolution Process (CIRP) of RCOM fraudulently by Punit Garg,” the spokesperson said.
“The sale proceeds of USD 8.3 million were remitted from the US under the guise of a sham investment arrangement with a Dubai-based entity controlled by a Pakistan-linked individual, without the knowledge or consent of the Resolution Professional. Probe has also revealed that part of the proceeds of crime – public money taken by RCOM as bank loans – was diverted for Garg’s personal expenses, including overseas education-related payments of his children,” the spokesperson said.