RCom Money Laundering Case: ED Alleges Fraud Proceeds Were Used To Buy Luxury Yacht ‘TIAN’ and New York Condominium

Moneylife Digital Team 16 June 2026

Economy & Nation

A special court dealing with cases under the Prevention of Money Laundering Act (PMLA) has taken cognisance of a prosecution complaint filed by the directorate of enforcement (ED) against former Reliance Communications Ltd (RCom) executive director Puneet Garg and another accused in connection with an alleged money laundering case linked to a bank fraud investigation.

ED said the Special Court (PMLA) at Rouse Avenue Courts, New Delhi, took cognisance of the prosecution complaint on 15 June 2026.

The complaint was filed on 27 March 2026 against Mr Garg and Vaishali Mane under the provisions of the PMLA in the case involving RCom and others.

According to ED, Mr Garg, a former director of Rcom, was arrested on 29 January 2026 and continues to remain in judicial custody.

The money laundering investigation stems from a first information report (FIR) registered by the central bureau of investigation (CBI) on 21 August 2025 alleging offences under Sections 120-B, 406 and 420 of the Indian Penal Code, 1860, along with provisions of the Prevention of Corruption Act, 1988. ED said four additional CBI FIRs registered in 2026 were subsequently merged into the enforcement case information report (ECIR).

The agency said Mr Garg held several senior positions within RCom over nearly two decades.

According to the investigation, he served as president overseeing the global enterprise business of RCom from 2006 to 2013. He later held the position of president (regulatory affairs) from 2014 to 2017 before being appointed executive director in October 2017.

Thereafter, he served as a non-executive director of the company from April 2019 until April 2025.

ED Alleges Diversion of Fraud Proceeds through Offshore Network

ED alleged that Mr Garg, while occupying senior managerial and directorial positions in RCom from 2001 to 2025, was actively involved in the acquisition, possession, concealment, layering and dissipation of proceeds of crime generated from the alleged bank fraud.

According to the agency, its investigation found that the proceeds of crime were diverted through multiple foreign subsidiaries and offshore entities associated with RCom.

ED further alleged that a portion of these funds was used to acquire a luxury yacht named 'TIAN', which was held through a company incorporated in the Bailiwick of Jersey, a British Crown Dependency.

Investigators also alleged that proceeds of crime were utilised to purchase a luxury condominium apartment in Manhattan, New York, US.

Luxury Assets Allegedly Sold during Insolvency Proceedings

The enforcement agency claimed that both the yacht and the Manhattan property were sold clandestinely and fraudulently during the corporate insolvency resolution process (CIRP) involving companies of the Reliance Anil Dhirubhai Ambani (ADA) group.

According to ED, the sale proceeds from these assets were subsequently dissipated rather than being returned to legitimate claimants.

The agency maintains that these transactions formed part of a broader effort to conceal and launder proceeds of crime generated through the alleged bank fraud.

Court Takes Cognisance of Prosecution Complaint

The cognisance taken by the special court marks the next stage in the prosecution process under the PMLA.

ED said further investigation into the matter is continuing.

Comments