Reliance Execs in ED Custody: Unraveling Rs 11,000 Crore Loan Fraud

A Delhi court has remanded former Reliance Anil Ambani Group executives Amitabh Jhunjhunwala and Amit Bapna to five days of Enforcement Directorate custody over alleged bank loan fraud. The ED claims loans were diverted to shell companies, accumulating over Rs 11,000 crore in proceeds.

On Thursday, a Delhi court ordered that former senior executives from the Reliance Anil Ambani Group, Amitabh Jhunjhunwala and Amit Bapna, be placed under Enforcement Directorate custody for five days. The decision stems from charges related to money laundering in an alleged bank loan fraud case.

The court's 24-page document states that the Enforcement Directorate discovered loan funds were misappropriated to shell companies allegedly controlled by the group. Digital evidence, consisting of emails, implicates the arrested parties in diverting loans worth crores.

Under the Prevention of Money Laundering Act, the executives are accused of being involved in bank loan fraud linked to Reliance Home Finance Limited and Reliance Commercial Finance Ltd. Jhunjhunwala and Bapna previously held high-ranking positions in these firms. The claimed proceeds of crime under the anti-money laundering law total over Rs 11,000 crore.

(With inputs from agencies.)