New Delhi | January 30,2026 | SKY LINK TIMES
ED Arrests Ex-RCOM Director Punit Garg in ₹40,000 Cr Fraud:
The Directorate of Enforcement (ED) has arrested Punit Garg, former Director of Reliance Communications Ltd (RCOM), in connection with an alleged ₹40,000 crore bank fraud and money laundering case, officials said on Friday. Garg has been taken into custody under the Prevention of Money Laundering Act (PMLA) as part of an ongoing financial investigation.
A special PMLA court at Rouse Avenue, New Delhi, has granted the ED nine days of custodial interrogation to further probe the alleged diversion and laundering of funds.
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Allegations of Offshore Fund Diversion
According to the ED, Garg played an active role in the acquisition, concealment, layering, and dissipation of “proceeds of crime” generated from loans taken by RCOM from Indian banks. Investigators allege that substantial portions of these funds—described as public money—were siphoned off through foreign subsidiaries and offshore entities linked to the company.
The agency further claimed that some of the diverted funds were used for personal expenditures, including financing the overseas education of Garg’s children.
Manhattan Luxury Condo Under Scanner
One of the most significant findings of the probe relates to the alleged purchase of a luxury condominium in Manhattan, New York, valued at $8.3 million, using diverted funds. The ED stated that the property was later sold during the Corporate Insolvency Resolution Process (CIRP) of Reliance Communications.
Investigators allege that the sale was conducted fraudulently, without the knowledge or consent of the Resolution Professional overseeing RCOM’s insolvency proceedings.
Dubai Link and “Sham Investment” Claim
The ED further claimed that the $8.3 million sale proceeds were remitted from the United States to a Dubai-based entity under the guise of a “sham investment arrangement.” According to the agency, this entity was allegedly controlled by a Pakistan-linked individual, raising concerns over cross-border fund movement and potential violations of insolvency norms.
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Garg’s Role at Reliance Communications
Punit Garg held several senior positions at RCOM over nearly two decades. He served as:
President (Global Enterprise Business) from 2006 to 2013
President (Regulatory Affairs) from 2014 to 2017
Executive Director from October 2017
Non-Executive Director from April 2019 until April 2025
The ED alleged that during his tenure between 2001 and 2025, Garg was involved in systematic fund diversion through complex corporate structures.
Investigation Ongoing
The ED stated that the investigation is continuing and more details are expected to emerge as custodial questioning progresses.
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