Judicial Custody Extended for Former Reliance Executives Amid Money Laundering Investigation

Court Decision on Reliance Executives

New Delhi: On Saturday, a court in Delhi decided to prolong the judicial custody of two former high-ranking officials from the Reliance Group, Amitabh Jhunjhunwala and Amit Bapna, until May 15, as part of an investigation into money laundering associated with Reliance Home Finance Limited (RHFL).

The Special Judge for the Prevention of Money Laundering Act (PMLA) at Rouse Avenue Courts granted the Enforcement Directorate (ED) request for further custodial interrogation.

Following the end of their previous custody, Jhunjhunwala and Bapna were brought before the court. Due to health issues, Jhunjhunwala appeared via video link from jail, prompting the court to request a health report from prison authorities.

Both individuals, who are close associates of Anil Ambani, were detained by the ED as part of an ongoing investigation under the PMLA, which was initiated based on several Enforcement Case Information Reports (ECIRs) linked to cases filed by the Central Bureau of Investigation (CBI).

The investigation focuses on alleged financial misconduct involving entities like Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL), where both men are believed to have had significant roles during their employment.

Jhunjhunwala, who previously held the position of Group Managing Director at Reliance and was Vice Chairman and Director of Reliance Capital Ltd, is accused of being a key decision-maker in the operations of RHFL and RCFL during the relevant timeframe, according to sources.

Bapna, who was the Chief Financial Officer of Reliance Capital Limited and a Director at RHFL, is also implicated in the financial decisions currently under investigation.

The ED's arrests were made after uncovering their alleged participation in laundering funds derived from criminal activities, particularly concerning the misappropriation of bank loan funds.

Previously, the CBI had initiated a case against Reliance Communications Ltd (RCom), Anil Ambani, and other unidentified public officials, alleging a wrongful loss of ₹3,750 crore to the Life Insurance Corporation (LIC) of India.

Anil Ambani has already been interrogated by the CBI regarding this issue.

In response to the situation, the Reliance Group clarified that Jhunjhunwala and Bapna are no longer affiliated with the company and are not currently employed by any of its subsidiaries.

The Anil Dhirubhai Ambani Group stated that Jhunjhunwala departed in December 2019, while Bapna left in September 2019, confirming that neither has any ongoing connection with group companies, including Reliance Infrastructure Limited and Reliance Power Limited.