NEW DELHI (Friday, March 27, 2026) — The Enforcement Directorate (ED) has filed a formal chargesheet (prosecution complaint) against Punit Garg, the former President and Executive Director of Reliance Communications (RCOM), in connection with one of India’s largest bank loan fraud and money laundering cases. The case involves an alleged diversion of over ₹40,000 crore in public funds borrowed from a consortium of banks.
Key Accused and Allegations
The more than 170-page chargesheet was filed before Special Judge Ajay Gupta at the Rouse Avenue Court under the Prevention of Money Laundering Act (PMLA).
- Punit Garg (61): Arrested by the ED on January 29, 2026, Garg is accused of playing a central role in the “acquisition, layering, and dissipation” of the proceeds of crime during his tenure (2001–2025).
- Vaishali Jairam Mane: A former director at the US-based Bonn Investment Inc, she has been named for her alleged role in facilitating offshore property transactions linked to the laundered funds.
The Modus Operandi: Diversion and “Sham” Deals
The ED investigation, which stems from a CBI FIR registered in August 2025, highlights a sophisticated network used to siphon off bank loans:
- Manhattan Luxury Condominium: Proceeds of crime were allegedly used to purchase a luxury apartment in New York. The ED claims Garg “fraudulently” sold this property in 2023 for $8.3 million during RCOM’s insolvency process without the consent of the Resolution Professional.
- Dubai-Pakistan Link: The sale proceeds were reportedly remitted from the US via a “sham investment arrangement” involving a Dubai-based entity controlled by a Pakistan-linked individual.
- Personal Expenses: A portion of the diverted public money was allegedly used for Garg’s personal expenditures, including overseas education fees for his children.
- Evergreening & Layering: Over ₹13,600 crore was allegedly diverted for the “evergreening” of loans, while ₹12,600 crore was routed through connected parties and foreign subsidiaries to disguise the origin of the funds.
[Image: Flowchart showing the diversion of bank loans through shell companies to offshore assets]
Case Status and Legal Context
This chargesheet marks a critical phase in the investigation into the Anil Ambani-led Reliance Group companies, which are under intense scrutiny following Supreme Court directives.
| Category | Details |
| Total Alleged Fraud | Over ₹40,000 Crore |
| Primary Charges | Sections 120-B, 406, 420 of IPC; PMLA, 2002 |
| Recent Related Actions | ED filed a chargesheet against Reliance Power Ltd in Dec 2025 regarding a ₹68 crore fake bank guarantee. |
| Next Step in Court | The court is scheduled to take up the chargesheet and Garg’s interim medical bail plea on March 28, 2026. |
Sources
- ANI News: “ED files chargesheet against former RCom director Punit Garg in Rs 40,000 crores Money laundering case” (March 27, 2026).
- Press Trust of India (PTI): “Bank loan ‘fraud’: ED files chargesheet against ex-RCOM executive Punit Garg” (March 27, 2026).
- The Hindu: “ED arrests former RCom director Punit Garg; chargesheet filed in Rouse Avenue” (Updated March 27, 2026).
- Business Standard: “ED to file chargesheet in ₹40k cr loan ‘fraud’ involving ex-RCOM president” (March 27, 2026).
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