The Enforcement Directorate (ED) has arrested two former executives of the Reliance Anil Ambani Group under the Prevention of Money Laundering Act (PMLA) in Mumbai, officials confirmed on 13 June. The agency took transit remand of Sateesh Seth and Gautam Doshi, who previously served as directors of Reliance Telecom Ltd, in connection with an alleged bank loan fraud case.

Background of the Case

The Central Bureau of Investigation (CBI) had booked and raided the premises of both Seth and Doshi in March as part of its probe into an alleged loan fraud worth ₹114.98 crore at the State Bank of India (SBI). The ED is understood to have taken cognisance of the CBI complaint and is now independently investigating the roles of the two former executives in the bank loan fraud.

Seth previously served as Vice Chairman of Reliance Infrastructure and is to be produced before a Delhi court for further custody proceedings.

The Wider Loan Fraud Probe

According to the CBI, SBI was part of a consortium of 11 banks that had sanctioned a total ₹735 crore term loan facility to Reliance Telecom Ltd. The alleged fraud relates to the misuse of these funds, officials said.

This comes after the CBI, earlier in June, arrested Amitabh Jhunjhunwala, a former Group Managing Director of Reliance Communications, in connection with an alleged loss of ₹2,929.05 crore caused to SBI by the company. Jhunjhunwala was produced before a court following which the CBI formally arrested him. Notably, this marks a significant escalation — with three senior former executives of the Anil Ambani group now in custody within weeks.

NCLT Admits SBI Plea Against Anil Ambani

In a parallel development, the National Company Law Tribunal (NCLT) on Thursday admitted a plea filed by SBI and initiated personal insolvency resolution proceedings against industrialist Anil Ambani in his capacity as a personal guarantor for loans extended to Reliance Communications (RCOM) and Reliance Infratel Ltd (RITL).

Responding to the NCLT order, a spokesperson for Anil Ambani said the order, once available, would be reviewed by his legal team and challenged through appropriate legal remedies. 'Mr Ambani remains confident of vindicating his position before the appropriate forums,' the spokesperson added.

What Happens Next

With the ED now pursuing money laundering charges alongside the CBI's fraud investigation, legal proceedings are expected to intensify across multiple courts. The NCLT's insolvency proceedings against Ambani as a personal guarantor add another layer of financial and legal scrutiny to the group's already embattled position. All accused are entitled to due process and have not been convicted of any offence.