A Delhi court on Saturday extended the judicial custody of former senior officials of the Anil Ambani-led Reliance Group, Amitabh Jhunjhunwala and Amit Bapna, until May 15.
As per INA, the extension comes in connection with a money laundering investigation being conducted by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), linked to Reliance Home Finance Limited (RHFL).
The Special Judge at Rouse Avenue Courts allowed the ED’s plea seeking continued custody for further interrogation in the ongoing probe.
Accused produced before court amid health concerns
Both Jhunjhunwala and Bapna were produced before the court after the completion of their earlier judicial custody period. Jhunjhunwala was presented via video conferencing from jail due to health issues, prompting the court to direct jail authorities to submit a detailed report on his medical condition.
ED probe linked to alleged financial irregularities
The ED investigation is based on multiple Enforcement Case Information Reports (ECIRs), which stem from cases registered by the Central Bureau of Investigation (CBI). The case involves alleged financial irregularities in Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL).
According to investigators, the two former executives are suspected of playing key roles in decisions related to the alleged diversion and misuse of bank loan funds during their tenure, reported IANS.
CBI case and broader allegations
The probe is also linked to earlier CBI action against Reliance Communications Ltd (RCom), Anil Ambani, and others. The case alleges a wrongful loss of approximately Rs 3,750 crore to the Life Insurance Corporation of India.
Anil Ambani has previously been questioned by the CBI in connection with the matter as part of the broader investigation into alleged financial irregularities across group entities.
Roles of the accused under scrutiny
Jhunjhunwala, who previously served as Group Managing Director of Reliance Group and Vice Chairman of Reliance Capital Ltd, is alleged to have been a key decision-maker in the functioning of RHFL and RCFL.
Bapna, former Chief Financial Officer of Reliance Capital Limited and Director of RHFL, is also under scrutiny for his alleged involvement in financial decisions being investigated by the ED.
Both were arrested after the agency claimed evidence of their involvement in laundering proceeds of crime linked to loan-related transactions.
Reliance Group’s clarification
The Anil Dhirubhai Ambani Group has stated that both Jhunjhunwala and Bapna are no longer associated with its companies. According to the group, Jhunjhunwala exited in December 2019, while Bapna left in September 2019.
The group clarified that neither individual holds any current position or association with entities such as Reliance Infrastructure Limited or Reliance Power Limited.
(With IANS Inputs)