Loan fraud case: Delhi court sends Anil Ambani’s former aides to five-day ED custody

New Delhi, April 16 A Delhi court on Thursday sent two former senior officials of the Anil Ambani-led Reliance Group — Amitabh Jhunjhunwala and Amit Bapna — to five days’ Enforcement Directorate (ED) custody in connection with a money laundering probe linked to an alleged bank loan fraud case.

The Special Judge, PMLA, at the Rouse Avenue Courts allowed the ED’s plea for custodial interrogation, sending the duo to the agency’s custody, even as the federal anti-money laundering agency had sought seven days’ remand.

Jhunjhunwala and Bapna, close aides of industrialist Anil Ambani, were arrested by the ED in an ongoing investigation under the Prevention of Money Laundering Act (PMLA), based on multiple Enforcement Case Information Reports (ECIRs) registered on the basis of cases filed by the Central Bureau of Investigation (CBI), according to sources.

The case pertains to alleged financial irregularities involving group entities such as Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL), where the two are suspected to have played key roles during their tenure.

Jhunjhunwala, who earlier served as Group Managing Director of the Reliance Group and Vice Chairman and Director of Reliance Capital Ltd, is alleged to have been among the key decision-makers in the functioning of RHFL and RCFL during the relevant period, sources said.

Bapna, who served as Chief Financial Officer of Reliance Capital Limited and Director of RHFL, is also alleged to have been involved in financial decisions under scrutiny.

According to sources, the ED arrested the duo after finding their alleged involvement in the laundering of proceeds of crime linked to the suspected diversion and misuse of bank loan funds.

Earlier this month, the CBI registered a case against Reliance Communications Ltd (RCom), Anil Ambani, unknown public servants and others on allegations of causing wrongful loss of Rs 3,750 crore to Life Insurance Corporation (LIC) of India.

According to the CBI, LIC was allegedly induced to invest Rs 4,500 crore in non-convertible debentures based on alleged misrepresentations regarding the financial health of the company and the security offered for such investments.

The agency has also been probing other bank fraud cases involving Reliance Group entities, including an alleged Rs 2,929.05 crore fraud linked to the State Bank of India (SBI).

Anil Ambani was earlier questioned by the CBI in connection with the matter.

Meanwhile, the Anil Ambani-led Reliance Group on Thursday said that Jhunjhunwala and Bapna are no longer associated with the group and are not presently working with any of its companies.

In a statement, the Anil Dhirubhai Ambani Group said Jhunjhunwala had left in December 2019, while Bapna exited in September 2019, and that neither has any current association with group companies, including Reliance Infrastructure Limited and Reliance Power Limited.

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