New Delhi, Jan 30 (NationPress) The Directorate of Enforcement (ED) has taken into custody Punit Garg, the former Director of Reliance Communications (RCOM) Ltd, under the Prevention of Money Laundering Act (PMLA) concerning an alleged bank fraud and money laundering case exceeding ₹40,000 crore, as stated by the agency on Friday.

The investigation reveals that Garg misappropriated the proceeds of crime to offshore corporations and utilized these funds to finance the international education of his children. Moreover, he reportedly fraudulently sold a luxury condominium valued at $8.3 million in Manhattan, New York, diverting the proceeds to a Dubai-based entity, according to the statement.

A Special Court for PMLA cases at Rouse Avenue in Delhi has granted the ED nine days of custody for Garg to facilitate interrogation as the investigation unfolds, as per the statement.

Having held multiple significant roles at Reliance Communications for nearly two decades, Garg served as President, managing the company’s Global Enterprise Business from 2006 to 2013, and later as President (Regulatory Affairs) from 2014 to 2017.

In October 2017, he ascended to the position of Executive Director at RCOM, eventually serving as a non-Executive Director from April 2019 until April 2025.

The ED claims that Garg was intricately involved in the acquisition, possession, concealment, layering, and dissipation of the “Proceeds of Crime” linked to the alleged bank fraud.

While occupying senior managerial and directorial positions from 2001 to 2025, Garg allegedly participated in diverting funds through various foreign subsidiaries and offshore entities associated with RCOM, the agency reported.

One significant aspect of the investigation pertains to the supposed diversion of funds for the acquisition of a luxury condominium in Manhattan.

The ED mentioned that this property was later sold during the Corporate Insolvency Resolution Process (CIRP) of RCOM, allegedly through deceptive practices.

The financial investigative agency asserted that the sale proceeds of $8.3 million were transferred from the US under the pretense of a “sham investment arrangement” involving a Dubai-based entity. The ED further alleged that this entity was controlled by an individual linked to Pakistan, and the remittance occurred without the knowledge or consent of the Resolution Professional in charge of the insolvency procedures.

Investigators also uncovered that a portion of the misappropriated loan funds—characterized as public money borrowed by RCOM from banks—was utilized for Garg’s personal expenses, as further claimed by the ED.