A special Prevention of Money Laundering Act (PMLA) court in New Delhi on Wednesday granted directorate of enforcement (ED) five days of custodial remand of Amitabh Jhunjhunwala, former vice-chairman of Reliance Capital Ltd, and Amit Bapna, the company's former chief financial officer (CFO) and chief operating officer (COO), in connection with one of India’s largest banking fraud and money laundering investigations.
The court specifically found that the email trail placed on record 'crystallises the role of both the accused Mr Jhunjhunwala and Mr Bapna' and that the digital evidence 'clearly indicates that instructions were being given by Mr Jhunjhunwala to Mr Bapna and Mr Bapna would approach Mr Jhunjhunwala for taking various decisions'. The court found this showed involvement in the "siphoning/diversion of funds to various entities."
Crucially, the Court justified custodial remand on the ground that 'the entire money trail of about ₹11,500 crore is required to be traced so that proceeds of crime are recovered' and that "accused persons are required to be confronted with the documents and the entire gamut of the complex transaction are required to be unveiled." The Court also found there was an 'imminent possibility of involving some other persons' whose roles were yet to be determined.
The order was passed by special judge Hasan Anzar at the Rouse Avenue district court. While ED had sought seven days of custody, the court allowed five, adding safeguards — including mandatory medical examination of both accused every 24 hours and a direction that all interrogation be conducted under audio-visual surveillance.
In a detailed 24-page order, the court carefully went through the defence arguments and rejected them one by one. The ruling also lays out, in considerable detail, the ED’s case on what it describes as a structured and premeditated financial fraud within the Anil Dhirubhai Ambani group (ADAG).
Fraud Allegations: Scale and Modus Operandi
At the heart of the case, as summarised in the order, is what the ED calls a 'pre-conceived and well-planned scheme' to siphon off public funds through two key group entities — Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL).
The investigation alleges that funds were routed through a network of shell or paper companies with little financial substance and no genuine business activity.
The numbers, as recorded in the order, are substantial.
RHFL is said to have received ₹35,368.97 crore between 2015 and 2020. During FY18–19 alone, around 80% of its disbursements were allegedly for non-housing purposes — a significant deviation from its core mandate. When defaults followed, 33 lending banks could recover just ₹2,116.28 crore out of ₹7,523.46 crore, leaving a gap of ₹5,407.18 crore which ED has identified as proceeds of crime.
In the case of RCFL, the figures are even larger. The company raised ₹1,13,424 crore between 2015 and 2021. Against a default of ₹8,228.47 crore, lenders recovered only ₹1,947.99 crore, leaving ₹6,280.47 crore as alleged proceeds of crime.
The court notes that a significant portion of funds — over ₹7,400 crore — was routed through 36 shell entities across dozens of loan accounts. Investigators claim this accounted for nearly 83% of total disbursements.
The order records serious procedural lapses: loans sanctioned without proper due diligence, absence of field verification, and approvals granted without formal credit committee meetings, with signatures allegedly obtained later.
Court’s Findings on Role of Accused
The court has placed considerable reliance on digital evidence, particularly email trails, to outline the roles of both accused.
For Mr Jhunjhunwala, the court notes his long tenure, serving as director of Reliance Capital from 2003 to 2019 and as vice-chairman from 2006 to 2019. It observes that he exercised significant control over group operations, including fund-raising and cash-flow monitoring.
Emails cited in the order show him issuing instructions to senior management and seeking regular updates on cash positions. The court also refers to communications indicating awareness of shell entities allegedly used in the transactions.
In Mr Bapna’s case, the court records that, as CFO and COO between 2008 and 2020, he played an operational role in executing decisions. Email exchanges suggest he regularly updated Mr Jhunjhunwala on financial movements and the entities involved, indicating close coordination.
The court concludes that the material on record indicates both accused were actively involved in the decision-making chain linked to the diversion of funds.
Defence Arguments Rejected
The defence teams raised multiple legal objections, all of which were examined and dismissed.
On reliance on an order passed by Securities and Exchange Board of India (SEBI), the Court held that regulatory findings by the market regulator operate in a different domain and do not affect criminal liability under the PMLA.
The argument that Mr Bapna had been cited as a witness in a case by central bureau of investigation (CBI) was also rejected, with the court noting that proceedings under PMLA are independent.
Claims relating to Mr Jhunjhunwala’s age, cooperation with investigators, and lack of asset attachment were also not considered sufficient to deny custodial interrogation.
The court further clarified that ED’s case was not limited to a single first information report (FIR) but was based on multiple complaints and investigations across agencies, including the Central Bureau of Investigation and the Mumbai Police’s Economic Offences Wing.
Why Custodial Remand Was Granted
In its reasoning, the court emphasised that the investigation is at an early stage and involves a complex financial trail estimated at around ₹11,500 crore.
It held that custodial interrogation was necessary to trace the full money trail, recover proceeds of crime, and identify other individuals who may be involved.
The court noted that the email evidence already on record 'crystallises' the roles of the accused and indicates a pattern of instructions and coordination in financial decisions.
The case forms part of a broader multi-agency probe into alleged financial irregularities within ADAG entities. Investigations span multiple jurisdictions, with financial trails reportedly extending to the US, UAE and Singapore.
Assets worth over ₹15,000 crore have already been attached across related cases, and several other individuals have been questioned or arrested.
You may also want to read...
Why don't he just walk into bjp washing machine like his brother and get throughly washed of all these money problem.
I bet within 6 months or less he will be sitting with our dear pm and pm saying that anil ambani is the best person in world to do trade with.
Today he is worth atleast a couple of billions or more; controlling over 10 bn $ of funds globally.
Would Amitabh Thakore Prasad Jhunjhunwala have become a billionaire while being employed by reliance industries and reliance ada group, merely on a big fat salary.. or following instructions after making the blueprint of financial jugglery the reason of becoming a billionaire, while being an employee for 30 years. He could have said no to instructions, if following orders was not the objective and route to become a billionaire.
Today both Anil Ambani and Amitabh Jhunjhunwala are like Siamese twins. They need Jhunjhunwala to turn approver and assist the agencies to guide the investigation, and minimize the impact on Anil Ambani and family. The blame game is a part of the game plan to get into the good books of investigators, become an approver and get out of Tihar at super sonic speed. While Anil Ambani prepares a firm settlement offer over next week to evade arrest.
Though on the contrary, the son in law, tried to mess around with the family patriarch, and has been banished from the family, with all doors closing on him. That’s why trying Amitabh Jhunjhunwala turns approver and loosens the impact of 7 cases over time by offering his assistance to the investigators. Hopefully the strategy won’t work, as a equal orchestrator of serious financial crimes can’t be let go easy by making him an approver
It was not any occasion to celebrate if the court sent him for a 5 day remand, despite ED asking for 7 days. Yet the proceedings brought a smile of joy to Jhunjhunwala, the smile which carried forward after the proceedings to the walkways leading him back to ED’s remand home.
Even the argument put by his lawyers pleading his 70 year age were rejected, as the 70,000 plus crore crime accused group, was led by jhunjhunwala as their finance supremo from his 50’s atleast till 64 years of age officially; continuing as a phantom of reliance center till agencies tightened the noose late last year.
Jhunjhunwala’s other pleas subtly included his wife’s sickness, who till recently was leading a school / education group from the front; due to which he was able to inform about his arrest only to his relative Rekha Jhunjhunwala.. ( not clear if it’s the chairperson of RARE).
Things are set to take another interesting turn when the financial mastermind appears at Rouse Avenue Court tomorrow. If anyone has to estimate Amitabh Jhunjhunwala’s game plan to come out of an imminent long term abode at Tihar, he will try to become an approver , a prosecution witness who helps agencies to unjumble the thousands of such “spv” pass through transactions every single year from the day he took charge as Anil Ambani groups finance and treasury chief. Who better can help agencies, apart from the man who made the blueprint of these “optically arms length” intra group transaction blueprint for maintaining regulatory compliances.
Does it really mean that Anil Ambani, who faces an imminent arrest, will get into more trouble. Everyone may feel that Amitabh Jhunjhunwala has rebelled against his master, but it may just be a smoke screen while the 2 beneficiaries and masterminds may still be in cahoots; preparing for a blame game on each other when the matters finally reach the courtroom. It would take a special court to be set up at Rouse Avenue to handle the cases which will keep seeing new chargesheets (7 or more) to hear the matter for years before it can reach the HC and the SC, by which time Jhunjhunwala would cross 90 years of age.
When the 2 men who planned the staging and financing of the biggest coup India has ever thought of, Jhunjhunwala’s smile after being sent to remand signals a victory of sorts.
Even if Anil Ambani is finally arrested, and Jhunjhunwala turns approver, sooner or later they will get access to draw down on the billions stashed abroad. The much needed moolah to fight a long legal battle to delay justice.
The legal gameplan of RAAGA may be a silent jugalbandi between Anil and Amitabh. Sacrifice Jhunjhunwala temporarily and make him an approver to shape the next course of investigations. During which time Anil Ambani makes a settlement offer, around 20-25,000 crore, before the next SC hearing on April 30th, backed by the single largest shareholder of India’s largest conglomerate. (Shareholding of close to 0.67%).
The statement of Amitabh Jhunjhunwala holding a golden visa for Dubai has come officially for the first time. But the mentions of Dubai have come up often in RAAGA related investigations. Punit Garg diverting proceeds of manhattan apartment sale; or alleged hawala transactions of road projects siphoning; routing of funds through shell companies. Was there a Phantom controlling the fund routings out of the financial hubs closest to India.. Dubai and Singapore… if all allegations that have come out are true, then wouldn’t Anil Ambani has a trusted long term confidant oversee such “shades of gray” transactions.. and who was the most trusted man of Anil Ambani since the time he waged a war against his elder brother to extort his pound of flesh from the fathers legacy. It has been Amitabh Jhunjhunwala all along, with Sateesh Seth being a distant second followed by hoards of Lalit Jalan’s and Punit Garg’s.
One quality Anil Ambani always had is the never say die attitude, and seeing An opportunity in every adversity.. Amitabh Jhunjhunwala sacrificing his head (temporarily) for his master to potentially turn approver is that opportunity to create a smokescreen to shape the future course of investigations that would have potentially implicated Anil Ambani’s family members too.
After all Jhunjhunwala owes his personal wealth of billions to none other than Anil Ambani. Else how would an ultra high salary employee become a billionaire without even holding 0.1% equity in any of Reliance Group firms over his 30 years of service. Jhunjhunwala is perhaps the only employee of any company across the world who made billions, without holding a single share of his employers. Unless he was running a parallel finance business while being a KMP of Reliance Capital. Even TAJ Capital Partners (T standing for his spouse, and AJ for the arrested accused) did not have revenues or profits to that extent; unless Quantum set up step down subsidiaries to create a complex web. Nor did MidCap had enough “own sources” to own 500 crore worth of prime real estate. Were these assets generated via unsecured loans, which later went sour and written off by the unknown lenders who later closed shop. (AN Sethuraman style Property acquisition using unsecured loan, that was later written off by the lender).
Despite the seizures of 16-17,000 crore, not all is lost for Anil Ambani and his billionaire aide Amitabh Jhunjhunwala; and they have started their game plan to recoup their freedom and the riches (allegedly siphoned funds from banks, LIC and other lenders). Will the recoup plan succeed or fail miserably the way July 2025 failed political coup ??? Only time will tell, if Indian financial crime agencies accept Amitabh Jhunjhunwala’s attempt to become an approver, or shrug him the way Anil Ambani was after the infamous Hindenburg report on a top Indian conglomerate from Ahmedabad.
It won’t be surprising if the Ace mastermind Jhunjhunwala is, has already convinced ED to make him an approver in last 3 days, before he is brought to Rouse Avenue court tomorrow afternoon.
After all despite the Group CFO driving every RAAGA company to bankruptcy, was able to create offshoots of RCAP to continue securing bank loans for years; and later becoming a global fund manager based out of Dubai and Singapore despite his poor / dismal track record as a fund manager who took once Worlds 4th richest man to personal bankruptcy.
However, don't you feel a lot of what you're saying may be just speculation? These people usually get away with such things at a high level.
What I said was that they know the hit is coming, and are looking at softening the hit. Jhunjhunwala turning approver by playing a public blame game, is his key to become an approver. And once the perpetuator / mastermind becomes an approver, the mastermind knows the service he needs to do to his master. And the master also knows, domestic cash flows are tight, and Amitabh Jhunjhunwala needs to take a flight, to get the global cash routed to their side. The best bet they have is to get jhunjhunwala off the no- international flight list. Both Anil Ambani and Jhunjhunwala have been stranded in India since the 28 July look out circular. One of them needs to go out to get the funds funneled back to India for a long legal battle.
As things stand today, it is highly unlikely that Anil Ambani or even Sateesh Seth will get away.. Punit Garg’s chat back up has already served them on a platter to investigators. While Garg may have remained silent till now, his chat back up with approvals from Anil and Tina or Sateesh Seth’s encouragement of pulling off a great job, speak for themselves.
And if they still evade the place they ought to be in, to give company to Jhunjhunwala, then the little faith Indians have in the mirage called Justice, will fade out completely.
All I can reply to my comments being “speculative” is, that let’s wait and watch. The lil birdie who whispered this to me, could be wrong despite being an insider in-the-thick of things. Might be that one of the camps is intentionally leaking a “conspiracy theory” thru their friends like me.
Do you really think that strategy is still sustainable for them?
I also have another lil birdie who has mentioned to me about Garg's chats with the family and their personal "trusts". More importantly, 30th April is around the corner too and even a few Delhi trips right now would not really suffice. Or would they?
For Jhunjhunwala, u shud also read between the lines of who he informed upon arrest. Not his wife who is in Mumbai. Not his son Abhinav sitting in Singapore. He can easily afford a private jet to fly to his father immediately. But fears he will not be able to return. He informed a very powerful and rich relative; and they powerful relative may have a former sub ordinate of Jhunjhunwala working there to handle the task. That’s an indication who to contact.. and the one to contact happens to own RARE wealth.
The only way Amitabh gets out of Tihar this year is if he spills the beans of his master Anil. For which he will negotiate protection as a prosecution witness and approver, for a highly reduced sentence.
Let’s not forget more cases and more chargesheets are coming. Punit Garg, Bapna, Kalya and Vishwanath will keep doing musical chairs between cases and spend a lot of time at Tihar. If CBI arrests, there is no bar for ED to arrest again. And vice Versa. And a billionaire like Jhunjhunwala has the ability to find a way out. After all what are the billions worth when you have to spend time behind bars. Others arrested done have that kind of money which can buy freedom. Amitabh Jhunjhunwala amassed it from Anil Ambani by masterminding the blueprint of financial transactions that now are being termed as a scam. Could Anil Ambani have pulled it all alone, without masterminds like Jhunjhunwala and executors like Garg or Vishwanath or kalya. It’s not humanly possible. And everyone who knowingly abbets such acts being blamed on anil Ambani are also equally to be blamed. Everyone made their pound of flesh, as per their levels. Literally speaking Anil Ambani lost much more than what Jhunjhunwala or Garg or Vishwanath made. That doesn’t absolve Anil ambani neither any of these employees. Though it is yet to be seen if any of these employees name executor No 1, Sateesh Seth.
If anyone else apart from anil Ambani is to be blamed and punished, two names who actively planned and executed the alleged 73000 crore diversion were Amitabh Jhunjhunwala and Sateesh Seth. Two of them are still out. If they remain out till April 30th, they may be out of bounds after the thick report ED submits in SC next Thursday.