The Directorate of Enforcement (ED) has apprehended Punit Garg, former Director of Reliance Communications (RCOM) Ltd, under the Prevention of Money Laundering Act (PMLA) for his involvement in a bank fraud and money laundering scheme exceeding Rs 40,000 crore. Garg allegedly diverted illicit funds to overseas entities and utilized them for funding his children’s education abroad, as well as deceitfully selling a luxury condo in Manhattan for $8.3 million and transferring the proceeds to a Dubai-based entity.
Following the arrest, the Special Court for PMLA cases in Delhi has granted the ED a nine-day custody of Garg for further investigation into the matter. Garg, who held various significant positions at Reliance Communications for almost two decades, was accused of actively participating in the acquisition, concealment, and dissipation of the “Proceeds of Crime” associated with the alleged bank fraud.
During his tenure at RCOM from 2001 to 2025, Garg purportedly engaged in diverting funds through multiple foreign subsidiaries and offshore entities connected to the company. Notably, investigators discovered a substantial diversion of funds for the purchase of a high-end condominium in Manhattan, which was later sold under questionable circumstances during RCOM’s insolvency proceedings.
The ED claimed that the sale proceeds, totaling $8.3 million, were transferred from the US through a dubious investment arrangement involving a Dubai-based entity allegedly controlled by an individual with links to Pakistan. Moreover, a portion of the misappropriated loan funds, sourced from public money borrowed by RCOM, was allegedly utilized for Garg’s personal expenses, as per the ED’s allegations.
