A Delhi court on Saturday, 2 May extended the judicial custody of two former senior officials of the Anil Ambani-led Reliance Group — Amitabh Jhunjhunwala and Amit Bapna — until 15 May, in connection with a money laundering investigation linked to Reliance Home Finance Limited (RHFL). The order was passed by the Special Judge, PMLA, at the Rouse Avenue Courts, allowing the Enforcement Directorate (ED) plea for continued custodial interrogation.

Court Proceedings and Health Concern

Both accused were produced before the Rouse Avenue Court following the expiry of their previous judicial custody period. Notably, Jhunjhunwala appeared before the court via video conferencing from jail owing to his poor health. The court directed jail authorities to submit a medical report on his condition, signalling judicial oversight of his welfare while in custody.

Background of the Arrests

Jhunjhunwala and Bapna, described as close associates of industrialist Anil Ambani, were arrested by the ED under the Prevention of Money Laundering Act (PMLA). The arrests were based on multiple Enforcement Case Information Reports (ECIRs) registered on the basis of cases originally filed by the Central Bureau of Investigation (CBI).

The probe centres on alleged financial irregularities involving group entities RHFL and Reliance Commercial Finance Limited (RCFL), where the two are suspected to have played pivotal roles during their respective tenures. The ED has alleged their involvement in the laundering of proceeds of crime linked to the suspected diversion and misuse of bank loan funds.

Roles of the Accused

Jhunjhunwala previously served as Group Managing Director of the Reliance Group and Vice Chairman and Director of Reliance Capital Limited. According to sources, he is alleged to have been among the key decision-makers in the functioning of RHFL and RCFL during the period under scrutiny.

Bapna served as Chief Financial Officer of Reliance Capital Limited and Director of RHFL, and is similarly alleged to have been involved in financial decisions now under the ED's lens.

The CBI Case and Anil Ambani's Questioning

The broader investigation traces back to a CBI case registered against Reliance Communications Limited (RCom), Anil Ambani, unknown public servants, and others, over allegations of causing a wrongful loss of ₹3,750 crore to Life Insurance Corporation (LIC) of India. Anil Ambani was earlier questioned by the CBI in connection with the matter, though he has not been arrested in this case.

Reliance Group Distances Itself from the Duo

The Anil Dhirubhai Ambani Group issued a statement clarifying that Jhunjhunwala and Bapna are no longer associated with any of its companies. According to the group, Jhunjhunwala left in December 2019 and Bapna exited in September 2019. The statement specifically noted that neither individual has any current association with Reliance Infrastructure Limited or Reliance Power Limited.

With custody now extended to 15 May, the ED is expected to intensify its interrogation of both accused as the probe into the alleged loan fraud at RHFL and RCFL deepens.