Archive · 1 Feb 2026
ED Arrests RCOM Ex-Chief in Rs 40,000 Crore Fraud Case
The Directorate of Enforcement (ED) in India has arrested Punit Garg, a former top executive of Reliance Communications (RCOM), for his alleged role in a massive bank fraud and money laundering case worth over Rs 40,000 crore.
The ED claims that Garg diverted money from the company to offshore entities and used some of it for his children's education and to buy a luxury apartment in New York.
He is also accused of selling this apartment fraudulently and sending the money to a Dubai-based entity linked to an individual from Pakistan.
The court has allowed the ED to keep Garg in custody for nine days to question him further.
Garg held important positions at RCOM for many years, including as President and Executive Director.
Punit Garg, ex-Director of Reliance Communications (RCOM), arrested by the ED under PMLA for a Rs 40,000 crore bank fraud and money laundering case.
Garg allegedly diverted proceeds of crime to offshore entities and used funds for personal expenditures, including his children's education and a luxury condo in Manhattan.
The ED claims the condo was sold fraudulently during RCOM's insolvency process, with proceeds sent to a Dubai-based entity linked to a Pakistan-linked individual.
Garg held senior roles at RCOM from 2001 to 2025, including President and Executive Director.
Special Court for PMLA cases granted ED nine days' custody of Garg for further interrogation.
- Who
- Punit Garg, ex-Director of Reliance Communications (RCOM) Ltd
- What
- Arrested for bank fraud and money laundering under the Prevention of Money Laundering Act (PMLA)
- When
- Arrested on Friday, custody granted for nine days
- Where
- New Delhi, India
- Why
- Alleged involvement in diverting proceeds of crime to offshore entities and personal expenditures
ED's Perspective
Punit Garg's Defense
Diversion of Funds
ED's Perspective
ED alleges that Punit Garg diverted proceeds of crime to offshore entities and used funds for personal expenditures, including his children's education and a luxury condo in Manhattan.
Punit Garg's Defense
No defense statement provided in the articles.
Fraudulent Sale of Property
ED's Perspective
ED claims the condo was sold fraudulently during RCOM's insolvency process, with proceeds sent to a Dubai-based entity linked to a Pakistan-linked individual.
Punit Garg's Defense
No defense statement provided in the articles.
- Arrested Individual
- Punit Garg, ex-Director of Reliance Communications (RCOM) Ltd
- Charges
- Bank fraud and money laundering under the Prevention of Money Laundering Act (PMLA)
- Amount Involved
- Over Rs 40,000 crore
- Key Allegations
- Diversion of proceeds to offshore entities, financing overseas education, fraudulent sale of luxury condo
- Custody Duration
- Nine days granted by Special Court for PMLA cases
- Property Involved
- $8.3 million luxury condo in Manhattan, New York
- Alleged Recipient
- Dubai-based entity controlled by a Pakistan-linked individual
Sources
ED arrests RCOM ex-chief Punit Garg in Rs 40,000 crore bank fraud case
Who is Punit Garg ? ED arrests ex-RCom president in Rs 40,000-cr alleged bank loan fraud case
Ex-Reliance Communications Director Punit Garg Arrested In Rs 40,000 Crore Bank Fraud Case
ED arrests former RCOM director in Rs 40,000-crore bank fraud case
Fraud cuffs on former RCOM president Punit Garg in Rs 40,000-crore bank scam - Telegraph India
