The Enforcement Directorate has received five day custody of the two former senior executives of the Anil Ambani-led Reliance Group after their arrest in the ongoing bank fraud and money laundering investigation.
Amitabh Jhunjhunwala and Amit Bapna have been taken into custody under provisions of the Prevention of Money Laundering Act (PMLA) as part of a probe into alleged financial irregularities involving entities of the group.
The case relates to alleged money laundering linked to Reliance Home Finance Ltd and Reliance Commercial Finance Ltd, both of which were formerly part of Reliance Capital. Jhunjhunwala had served as vice chairman of Reliance Capital, which held these lending entities at the time. Bapna served as a director of RHFL.
Proceedings in the ED case continued late into the night on Thursday, with the hearing extending until around 4:30 a.m. The agency sought custodial remand of the accused, and a court order on the ED's remand plea was expected after 10 a.m. on Friday.
The arrests come amid an ongoing investigation into suspected diversion and misuse of loan funds, which is part of a broader money laundering probe against several Reliance Group entities. The ED has been examining transactions linked to bank loans extended to group companies and their subsequent utilisation. The money laundering case of the ED stems from FIRs filed by the Central Bureau of Investigation.
Reliance Group said in a clarification that Amitabh Jhunjhunwala and Amit Bapna left the Group in September 2019 and December 2019, respectively, and they had no association with the Group thereafter, including Reliance Infrastructure Ltd. and Reliance Power Ltd.
In addition, the Supreme Court on Thursday declined to interfere in proceedings linked to the fraud classification of industrialist Anil Ambani, dismissing his appeals against a Bombay High Court division bench order that favoured lender banks.
The ruling allows banks to continue action arising from fraud-related show-cause notices issued to Ambani. It also leaves in place the high court's finding that interim relief granted earlier against such action should not have been allowed.
Ambani had challenged the division bench order, which had set aside interim protection earlier granted to him in matters involving Bank of Baroda, IDBI Bank and Indian Overseas Bank.
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