Former RCOM President Puneet Garg arrested: ED arrested in bank fraud of Rs 40 thousand crores; Allegations of fraud and money laundering

Former President of Reliance Communications (RCOM) Puneet Garg (file photo)

The Enforcement Directorate (ED) has arrested Punit Garg, former president of Reliance Communications (RCOM). Puneet is accused of fraud and money laundering of about Rs 40,000 crore with banks through Anil Ambani Group companies.

On Friday, ED said that a special court in Delhi has sent Garg to ED custody for 9 days. Puneet Garg was detained on Thursday.

Garg held important positions in the company for 24 years.

Puneet Garg held senior positions like Director and President in Reliance Communications for a long time. ED claims that Garg was active in the company from 2001 to 2025.

During this time, he played an important role in hiding, disposing and layering the money obtained through bank fraud. According to the investigating agency, Garg had full knowledge of where and how the loan money was being diverted.

Allegation of diverting funds through foreign companies

The investigating agency said in its statement that RCom and its group companies diverted loans worth thousands of crores taken from banks instead of using them in the right place.

It is alleged that this money was diverted through many foreign subsidiaries and institutions. ED claims that Puneet Garg was involved in this entire process and helped the company in disposing of the proceeds of crime.

Shares and mutual funds bought in wife’s name confiscated

Just two days before the arrest of Puneet Garg, on Wednesday, ED had taken another major action. The agency had ‘attached’ and confiscated many shares and mutual funds in the name of Puneet Garg’s wife. ED believes that these properties were created with the same money which was obtained by defrauding banks. Since this action, speculations were being made that a crackdown could be imposed on Garg.

Anil Ambani Group’s troubles increased further

After the arrest of Puneet Garg, the problems of Reliance Group (Anil Ambani Group) may increase further. However, no official statement has yet come from Reliance Group on this entire matter.

RCom has been struggling with debt crisis for a long time and is going through bankruptcy process. Now the arrest of the President level officer has further affected the credibility of the group.