Delhi court extends custody of ex-Reliance Group officials to July 15 in loan fraud case
Synopsis
A Delhi court has extended the custody of two former Reliance Group insiders — once among Anil Ambani's closest aides — until 15 July, as the ED's money laundering case over alleged bank loan fraud at RHFL and RCFL enters a decisive phase. A cognisance hearing on 9 July could formally set the prosecution in motion.
Key Takeaways
Rouse Avenue Court extended judicial custody of Amitabh Jhunjhunwala and Amit Bapna until 15 July on 1 July 2025 .
The Enforcement Directorate arrested both under the Prevention of Money Laundering Act (PMLA) in connection with alleged fraud at RHFL and RCFL .
Court has posted 9 July for hearing on cognisance of the ED's prosecution complaint — a critical procedural milestone.
Jhunjhunwala was former Group MD of Reliance Group; Bapna was CFO of Reliance Capital — both exited the group in 2019 .
The Anil Dhirubhai Ambani Group has stated neither accused holds any current association with its companies.
A Delhi court on Wednesday, 1 July extended the judicial custody of Amitabh Jhunjhunwala and Amit Bapna — two former senior officials of the Anil Ambani-led Reliance Group — until 15 July, in connection with a money laundering investigation linked to an alleged bank loan fraud. The two accused were produced before the Rouse Avenue Court via video conferencing upon the expiry of their earlier custody period.
Key Developments in Court
The court additionally scheduled 9 July as the date for hearing on whether to take cognisance of the prosecution complaint filed by the Enforcement Directorate (ED). The case is being pursued under the Prevention of Money Laundering Act (PMLA), with multiple Enforcement Case Information Reports (ECIRs) registered on the basis of cases filed by the Central Bureau of Investigation (CBI).
Who Are the Accused and What Is Alleged
Jhunjhunwala previously served as Group Managing Director of the Reliance Group and as Vice Chairman and Director of Reliance Capital Ltd. He is alleged to have been among the key decision-makers in the functioning of Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL) during the relevant period.
Bapna, who served as Chief Financial Officer of Reliance Capital Limited and Director of RHFL, is also reported to have been involved in financial decisions now under scrutiny. According to ED sources, both were arrested after investigators allegedly found their involvement in laundering proceeds of crime linked to the suspected diversion and misuse of bank loan funds.
What the Reliance Group Said
The Anil Dhirubhai Ambani Group distanced itself from the two accused in a statement, clarifying that neither Jhunjhunwala nor Bapna is currently associated with any of its companies. The group stated that Jhunjhunwala left in December 2019 and Bapna exited in September 2019, and that neither has any present link to group entities including Reliance Infrastructure Limited and Reliance Power Limited.
Background: RHFL and RCFL Under the Scanner
The case centres on alleged financial irregularities at Reliance Home Finance Ltd and Reliance Commercial Finance Ltd — two lending arms of the broader Reliance Group. Investigators suspect that bank loan funds were diverted and misused through these entities, with the two accused allegedly playing key roles during their respective tenures. This is part of a wider ED probe into the Reliance Group's financial ecosystem, which has drawn sustained regulatory attention over recent years.
What Happens Next
With custody extended to 15 July and a cognisance hearing set for 9 July, the case moves into a critical procedural phase. If the court takes cognisance of the ED's prosecution complaint, it would mark a significant escalation in the formal legal proceedings against the two former officials.
Point of View
But the substantive question is whether the ED's prosecution complaint contains sufficient material to withstand judicial scrutiny at the threshold stage. The Reliance Group's swift public distancing from both accused — emphasising their 2019 exits — is a standard corporate liability containment move, but it does not resolve questions about decisions made during their tenures. What remains underreported is the broader systemic issue: RHFL and RCFL were retail-facing lenders whose alleged fund diversion, if proven, affected ordinary depositors and creditors, not just institutional balance sheets. The real accountability test lies not in custody extensions but in how the eventual trial addresses the chain of financial decisions.
NationPress
1 Jul 2026
Frequently Asked Questions
Why were Amitabh Jhunjhunwala and Amit Bapna arrested by the ED?
The Enforcement Directorate arrested both former Reliance Group officials under the Prevention of Money Laundering Act (PMLA) over alleged involvement in laundering proceeds of crime linked to suspected diversion and misuse of bank loan funds at Reliance Home Finance Ltd and Reliance Commercial Finance Ltd.
What is the Delhi court's next hearing date in this case?
The Rouse Avenue Court has posted 9 July for a hearing on whether to take cognisance of the ED's prosecution complaint. Judicial custody of both accused has been extended until 15 July.
What roles did Jhunjhunwala and Bapna hold in the Reliance Group?
Amitabh Jhunjhunwala served as Group Managing Director of the Reliance Group and as Vice Chairman and Director of Reliance Capital Ltd. Amit Bapna served as Chief Financial Officer of Reliance Capital Limited and Director of Reliance Home Finance Ltd.
Is the Anil Ambani-led Reliance Group implicated in the case?
The case involves alleged financial irregularities at group entities RHFL and RCFL. However, the Anil Dhirubhai Ambani Group has stated that both accused left the organisation in 2019 and have no current association with any of its companies.
What is the PMLA and why does it apply here?
The Prevention of Money Laundering Act (PMLA) is a central law that criminalises the laundering of proceeds from specified offences. The ED invoked it here based on CBI cases alleging bank loan fraud, investigating whether funds were diverted and the proceeds subsequently laundered through group entities.
