ED Tightens Grip in Loan Fraud Case with Custody of Ex-Executives

The Enforcement Directorate (ED) has secured five-day custody of two former executives linked to the Reliance Group as part of an ongoing probe into an alleged loan fraud and money laundering case. The development marks a significant step in the investigation into financial irregularities involving companies once associated with the group led by Anil Ambani.

The individuals taken into custody — Amitabh Jhunjhunwala and Amit Bapna — have been booked under provisions of the Prevention of Money Laundering Act (PMLA). The ED is investigating alleged financial misconduct involving entities such as Reliance Home Finance Ltd and Reliance Commercial Finance Ltd, both of which were previously part of Reliance Capital’s lending operations.

According to officials, Jhunjhunwala had served as vice chairman of Reliance Capital, which held the lending entities during the period under scrutiny, while Bapna was a director at Reliance Home Finance Ltd. The probe is focused on suspected diversion of funds and irregularities in loan disbursement, with the agency examining the flow of money and potential violations of financial regulations.

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Court proceedings related to the case extended late into Thursday night, with hearings continuing until around 4:30 a.m. The ED sought custodial remand for further interrogation, and a court order on the plea was expected later on Friday. The case adds to ongoing scrutiny of financial practices within large corporate groups and highlights regulatory efforts to address alleged economic offences.

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