ED custody ordered as Delhi court remands RAAG ex-executives in RHFL-RCFL case

A Delhi court on Thursday remanded Reliance Anil Ambani Group’s former senior executives Amitabh Jhunjhunwala and Amit Bapna to Enforcement Directorate custody for five days. The case links to alleged money laundering tied to bank loan fraud. The agency arrested both under the Prevention of Money Laundering Act in a probe involving RHFL and RCFL.

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The court order said the ED’s case rests on a digital trail. It referred to emails and other material seized during the investigation. The order said this evidence "crystalises\" how the two accused allegedly helped move loan funds. The court also said the emails show both were part of key decisions.

ED custody in Reliance Anil Ambani Group loan probe

Special judge Hasan Anzar of the Rouse Avenue District Court granted the ED custodial remand for five days. The order said the accused must be produced before the concerned court on 20.04.206. The judge said the remand was allowed after considering the full facts and circumstances placed on record.

According to the 24-page order, the ED found that loan amounts were allegedly siphoned to shell companies. The court said these entities were described as shell or dummy firms. It added that, based on the investigation so far, the entities were under Reliance Anil Ambani Group control.

Reliance Anil Ambani Group executives named in court order

Jhunjhunwala, 70, earlier held several group roles. Jhunjhunwala served as group managing director of the Reliance Group. Jhunjhunwala also served as vice chairman and director of Reliance Capital Limited. Reliance Capital Limited is the parent company of RHFL and RCFL.

Bapna earlier worked as the chief financial officer of Reliance Capital Limited. Bapna also served as a director of Reliance Home Finance Limited. The ED arrested both on Thursday in the alleged bank loan fraud case. The probe relates to Reliance Home Finance Limited and Reliance Commercial Finance Ltd.

Reliance Anil Ambani Group default and ED proceeds of crime claim

The order said the two Reliance Group companies allegedly defaulted on loans. It said the unrecoverable amount was treated as proceeds of crime under PMLA. The court order quantified this amount as over Rs 11,000 crore. The ED linked this figure to the alleged diversion of loan funds.

The court said the ED showed that funds moved after loans were taken from various entities. It said the money was disbursed to several shell and dummy companies. The judge said the digital emails and other material support this claim. The order said the trail clearly points to a role by both accused.

Reliance Anil Ambani Group emails cited in remand hearing

The court also referred to emails from 2018 and 2019. It said these emails suggest funds went out on the same day. It added that loan account numbers became NPA, or non-performing asset, on that day. The order said this timing was a relevant feature during the remand hearing.

The order highlighted one email dated 27.02.2019. It said the message was from Bapna to Jhunjhunwala. It stated that the email \"would cleary reveal that accused Bapna would update Jhunjhunwala about various shell companies alongwith its name, date and other financial indicators,\" according to the court.

Jhunjhunwala’s lawyer raised issues about a 2017 email. The lawyer said the agency did not examine references to ADA in that mail. The lawyer told the court that \"each and every instruction was given by ADA and the top management which he passed on downwards.\" The court recorded these arguments in its order.

The judge said the relied upon emails suggest decisions involved top management. The order said several mails were also marked to senior officials. The court said the ED’s material still indicated both accused played a role in diversion. The matter will return to the concerned court on 20.04.206.

With inputs from PTI