Investigation – Court Sends Former Reliance Executive Gautam Doshi to Judicial Custody Until July 1
Investigation – A Delhi court has ordered former Reliance group executive Gautam Bhailal Doshi to remain in judicial custody until July 1 in connection with an alleged money laundering investigation linked to Reliance Communications (RCom). The Enforcement Directorate (ED) informed the court that Doshi had been produced before a vacation court on Wednesday, following which he was remanded to judicial custody.
Custody Follows Earlier ED Interrogation
Doshi was previously placed in the custody of the Enforcement Directorate for five days after his arrest in the case. The order was passed on June 13 by a vacation court after hearing submissions from both the investigating agency and the defence. The ED had sought a longer custodial remand, arguing that further questioning was necessary to trace the movement of funds and determine the roles of individuals connected to the alleged transactions.
According to court records, Doshi was directed to be produced before the court again on June 18 after completion of the agency’s custodial interrogation.
Allegations Linked to Reliance Group Financial Operations
Investigators have alleged that Doshi held a key position within the Reliance ADA Group and exercised substantial influence over its financial and corporate affairs. During the period under examination, he reportedly served as one of the group’s managing directors and was also a director of Reliance Telecom Limited.
The ED has claimed that he was associated with several critical functions, including overseas financing arrangements, foreign currency bond issuances, offshore corporate structures and banking operations. The agency further alleges that he had authority over a large number of bank accounts maintained by multiple group entities.
Court Notes Evidence Gathered During Probe
While granting the earlier custodial remand, the court observed that material collected during the investigation indicated Doshi’s active role in supervising financial activities across domestic and overseas entities. The court referred to documents, banking records, audit committee materials, financial statements and witness testimonies gathered under provisions of the Prevention of Money Laundering Act (PMLA).
Investigators have also relied on electronic records and internal communications that they say demonstrate his involvement in decisions concerning corporate structures, financial transactions and banking arrangements.
ED Alleges Diversion of Loan Funds
The Enforcement Directorate’s case is based on allegations that Reliance Communications, Reliance Telecom and Reliance Infratel, along with other group entities, obtained large credit facilities from a consortium of banks through alleged misrepresentation and deceptive practices.
According to the agency, funds obtained through these loans were later diverted in violation of sanctioned terms and conditions. The ED has alleged that portions of the money were routed through interconnected transactions, transferred to group companies, invested in mutual funds and moved through overseas channels.
Investigators claim the outstanding dues linked to consortium and non-consortium lenders together amount to nearly Rs 40,000 crore, which the agency considers proceeds of crime under its ongoing probe.
Focus on Offshore Transactions and Beneficiaries
The ED has stated that its investigation has uncovered a fund trail involving foreign remittances, offshore entities and overseas banking channels. Officials maintain that custodial interrogation was required to identify the decision-making process behind the alleged diversion of funds, determine the ultimate beneficiaries and examine the creation and operation of intermediary entities.
The agency has also said it is attempting to trace domestic and international assets that may have been acquired through the alleged proceeds of crime.
Defence Cites Cooperation and Health Concerns
Counsel representing Doshi opposed the ED’s request for extended custody, arguing that he had cooperated with investigators throughout the inquiry. The defence pointed out that his statement had already been recorded under the PMLA and claimed there was no allegation that he had obstructed or influenced the investigation.
The defence further urged the court to consider Doshi’s age, around 74 years, and his medical condition while deciding on the agency’s remand request.
The investigation remains ongoing, with the Enforcement Directorate continuing to examine financial records, banking transactions and the movement of funds linked to the case.