Investigation – Delhi Court Advances Hearing in Alleged RCom-Linked Money Laundering Case

Investigation – A Delhi court on Monday moved forward with proceedings in a money laundering case linked to an alleged bank fraud involving Reliance Communications (RCom). The case concerns accusations of financial irregularities amounting to nearly Rs 40,000 crore. The court took note of the prosecution complaint submitted by the Enforcement Directorate (ED) against former RCom Director Punit Narendra Garg and several other individuals named in the investigation.

Following its consideration of the complaint filed by the central anti-money laundering agency, the Rouse Avenue Court scheduled the matter for the next hearing on July 4. The development marks another step in an ongoing investigation that has attracted significant attention due to the scale of the alleged financial transactions involved.

Bail Request Rejected by Court

During the proceedings, the court also declined Garg’s application for bail. A detailed judicial order explaining the reasons behind the decision is expected to be released through the court’s official records in the coming days.

Garg has remained in custody since January 29, when he was arrested by the Enforcement Directorate under provisions of the Prevention of Money Laundering Act (PMLA). Investigators have been examining his role in transactions that are alleged to be connected with the generation and movement of unlawful funds.

Earlier Medical Relief Plea Denied

Prior to the latest hearing, Garg had approached the court seeking temporary release on medical grounds. His legal team argued that he required specialized medical evaluation and treatment at a private healthcare facility.

According to submissions made before the court, Garg had been undergoing treatment at Mumbai’s Kokilaben Dhirubhai Ambani Hospital before his arrest. His lawyers stated that doctors had recommended extensive medical examinations, including a capsule endoscopy procedure, and requested interim bail to facilitate the treatment. However, the court had previously rejected that request.

ED Details Alleged Financial Activities

The Enforcement Directorate has alleged that Garg played a significant role in handling funds that investigators describe as proceeds of crime. According to the agency, he was involved in activities related to the acquisition, management, concealment and movement of funds allegedly generated through fraudulent banking transactions.

Officials claim that during his tenure in senior management and directorial positions within Reliance Communications, multiple transactions were routed through foreign subsidiaries and offshore entities associated with the company. Investigators are examining whether these arrangements were used to divert funds away from their intended purposes.

Claims of Overseas Transfers Under Scrutiny

The agency has further alleged that part of the money was transferred to offshore entities and later used for personal expenditures. Among the allegations outlined in the complaint are claims that funds were utilized to support the overseas education expenses of Garg’s children.

In addition, investigators have referred to the sale of a luxury condominium in Manhattan, New York, reportedly valued at about $8.3 million. According to the ED, proceeds from the transaction were allegedly redirected to an entity based in Dubai through arrangements now under examination by investigators.

Insolvency Process Also Mentioned

The Enforcement Directorate has stated that the transfer of funds was allegedly carried out through what it describes as a sham investment structure. The agency further claims that the transaction took place without the knowledge or approval of the Resolution Professional responsible for overseeing Reliance Communications’ corporate insolvency resolution process.

The allegations remain under judicial consideration, and the court will continue hearing the matter as legal proceedings move forward. The next stage of the case is expected to focus on the evidence presented by investigators and responses from the accused individuals.