A Delhi court has taken cognisance of the Enforcement Directorate’s charge sheet against former Reliance Communications director Punit Narendra Garg and other accused in an alleged ₹40,000 crore bank fraud-linked money laundering case. The Rouse Avenue Court has listed the matter for further hearing on July 4 and also dismissed Garg’s bail plea.
The case relates to allegations investigated under the Prevention of Money Laundering Act. Garg was arrested by the ED on January 29 in connection with the matter. A detailed order on the bail plea is awaited and is expected to be uploaded on the court’s website.
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Court Lists Matter for July 4
The court took cognisance of the prosecution complaint filed by the federal anti-money laundering agency. The matter will now proceed before the Rouse Avenue Court on July 4.
The court also dismissed Garg’s bail plea. Earlier, the court had rejected his plea seeking interim bail on medical grounds. Garg had sought temporary release for medical examination and treatment at a private hospital.
His counsel had submitted that before his arrest, Garg was receiving treatment at Mumbai’s Kokilaben Dhirubhai Ambani Hospital and had been advised intensive medical examination, including capsule endoscopy.
ED Alleges Fund Diversion Through Offshore Entities
The ED has alleged that Garg, while holding senior managerial and directorial positions in Reliance Communications over several years, was involved in diversion of funds through multiple foreign subsidiaries and offshore entities linked to the company.
According to the agency, proceeds of crime generated through the alleged bank fraud were diverted to offshore entities and used for personal expenses. The ED has claimed that the funds were also used to finance the overseas education of his children.
The agency has further alleged that an $8.3 million luxury condominium in Manhattan, New York, was fraudulently sold and that the sale proceeds were siphoned to a Dubai-based entity.
Sham Investment Arrangement Under Scrutiny
The ED has alleged that the remittance was made through a sham investment arrangement without the knowledge or consent of the resolution professional overseeing Reliance Communications’ corporate insolvency resolution process.
The case forms part of a wider money laundering probe linked to an alleged ₹40,000 crore bank fraud. The court’s decision to take cognisance of the charge sheet marks the next stage in the proceedings.
Further developments will depend on the next hearing and the detailed court order on the bail plea.