ED files supplementary PMLA complaint against RCom in ₹40,185 crore case
Synopsis
The ED has escalated its ₹40,185 crore money laundering case against RCom with a supplementary PMLA complaint, naming Gautam Doshi, Sateesh Seth, and others. With both key accused in judicial custody and ₹8,078 crore in assets primed for confiscation, the case — rooted in alleged fraud dating to 2007 — is entering a decisive courtroom phase.
Key Takeaways
The ED filed a supplementary PMLA prosecution complaint against RCom on Saturday, 8 August , before the special PMLA court in New Delhi .
Proceeds of crime are quantified at ₹40,185.55 crore , representing defaults to consortium banks, financial institutions, and bondholders.
The ED has sought confiscation of properties worth ₹8,078.06 crore across five cities.
Gautam Bhailal Doshi (arrested 12 June ) and Sateesh Seth (arrested 9 July ) are both in judicial custody.
Alleged fraud includes false certification of end-use of $1 billion in FCCB proceeds and fund diversion to Reliance Infrastructure and Reliance Capital .
The fraudulent scheme is alleged to have begun as early as 2007 ; investigation remains ongoing.
The Directorate of Enforcement (ED) has filed a supplementary prosecution complaint against Reliance Communications Limited (RCom) under the Prevention of Money Laundering Act (PMLA) before the special PMLA court in New Delhi, according to an official statement issued on Sunday, 9 August. The complaint, filed on Saturday, is a continuation of the first prosecution complaint dated 27 March.
Who Has Been Arraigned
The accused named in the supplementary complaint include Reliance Communications Limited (RCom), Reliance Telecom Limited (RTL), Gautam Bhailal Doshi, Sateesh Seth, Amitabh Jhunjhunwala, and others. They have been charged for offences under Section 3 and Section 3 read with Section 70, punishable under Section 4 of the PMLA, 2002.
Doshi was arrested on 12 June this year, while Seth was arrested on 9 July. Both are currently in judicial custody. The special PMLA court had taken cognisance of the main prosecution complaint on 15 June.
Scale of the Alleged Fraud
The proceeds of crime have been quantified at ₹40,185.55 crore — the total outstanding amount defaulted by the borrower entities to consortium banks, financial institutions, and bondholders. Investigators have also documented the alleged false certification of the end-use of $1 billion in Foreign Currency Convertible Bond (FCCB) proceeds.
The ED has prayed for confiscation of properties worth ₹8,078.06 crore, already attached and confirmed by the Adjudicating Authority. The properties span leasehold and immovable assets across New Delhi, Navi Mumbai, Bhubaneswar, Chennai, and Pune.
How the Alleged Scheme Operated
According to the ED's investigation, the fraudulent scheme is believed to have commenced as far back as 2007 and continued as a connected and ongoing course of criminal activity. Fresh credit facilities were reportedly used to repay, rotate, and evergreen earlier domestic and foreign liabilities — rather than for their sanctioned purpose.
Funds were allegedly layered through group companies, purpose-built conduit entities, multiple bank accounts, and liquid mutual funds. The money was reportedly used to service earlier External Commercial Borrowings (ECBs) and FCCBs, and projected as legitimate business expenditure or receipts.
The investigation further revealed that loan proceeds were diverted to group companies including Reliance Infrastructure Ltd. and Reliance Capital Ltd., and allegedly siphoned to purchase personal assets for the promoters outside India, while also being used to artificially inflate profits for RCom.
Basis of the Investigation
The ED initiated its probe on the basis of multiple FIRs registered by the Central Bureau of Investigation (CBI), Banking Securities and Fraud Branch, New Delhi, on complaints from banks and financial institutions. The scheduled offences concern the fraudulent availing and diversion of fund-based and non-fund-based credit facilities by RCom, RTL, and Reliance Infratel Limited.
Further investigation in the case remains underway, officials confirmed. With two key accused already in judicial custody and asset confiscation proceedings active, the case is set to enter a critical phase before the special court in the coming weeks.
Point of View
And the supplementary complaint signals that the ED's investigation is widening rather than wrapping up. The alleged layering of funds through conduit entities and liquid mutual funds — and the claim that the scheme dates to 2007 — points to a systemic failure of bank due diligence over more than a decade. What remains to be tested in court is whether the ED can establish criminal intent beyond the civil debt default, a distinction that will determine whether this becomes a landmark PMLA conviction or another prolonged corporate fraud proceeding.
NationPress
9 Aug 2026
Frequently Asked Questions
What is the ED's PMLA case against Reliance Communications?
The ED has filed a supplementary prosecution complaint against RCom and its associates under the Prevention of Money Laundering Act, alleging proceeds of crime worth ₹40,185.55 crore. The case involves alleged fraudulent diversion of credit facilities, false certification of FCCB end-use, and layering of funds through group companies and conduit entities.
Who has been arrested in the RCom PMLA case?
Gautam Bhailal Doshi was arrested on 12 June and Sateesh Seth was arrested on 9 July; both are currently in judicial custody. Amitabh Jhunjhunwala and others have also been arraigned as accused in the supplementary complaint.
What properties are being sought for confiscation?
The ED has prayed for confiscation of properties worth ₹8,078.06 crore, already attached and confirmed by the Adjudicating Authority. These include leasehold and immovable assets in New Delhi, Navi Mumbai, Bhubaneswar, Chennai, and Pune.
When did the alleged fraud begin?
According to the ED's investigation, the fraudulent scheme commenced at least by 2007 and continued as a connected and ongoing course of criminal activity. Fresh loans were allegedly used to repay earlier liabilities rather than for their sanctioned purpose.
What happens next in the case?
The special PMLA court took cognisance of the main prosecution complaint on 15 June; the supplementary complaint will now be considered by the same court. The ED has confirmed that further investigation is still underway, indicating additional findings or accused may be added.
