The Enforcement Directorate  has arrested two former senior executives of the Anil Ambani-led Reliance Group in connection with an alleged bank loan fraud and money laundering case. Amitabh Jhunjhunwala and Amit Bapna were taken into custody under the Prevention of Money Laundering Act on Wednesday after extensive questioning by the agency. Both individuals were produced before a special court, which is likely to decide on their further remand.

Jhunjhunwala, who served as Vice-chairman and Director of Reliance Capital Limited, is considered a close aide of industrialist Anil Ambani. He is alleged to have been a key decision-maker in the operations of Reliance Home Finance Limited and Reliance Commercial Finance Limited . Bapna, who was a Director at RHFL, is also under scrutiny for his alleged role in the transactions. The arrests stem from multiple Enforcement Case Information Reports  registered by the ED based on FIRs filed by the Central Bureau of Investigation .

The probe centres on allegations that public funds raised by RHFL and RCFL from banks and financial institutions were diverted to various other Reliance Group companies, including Reliance Infrastructure, Reliance Power, and Reliance Communications. Investigators claim that over Rs 11,000 crore of these funds turned into non-performing assets, with money allegedly siphoned off through shell or dummy companies that had negligible financial strength and no genuine business operations. The ED has previously attached assets worth thousands of crores linked to the group in this and related cases.

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This development is part of a broader, long-running investigation into alleged large-scale financial irregularities involving Anil Ambani group entities. The CBI and ED have been examining multiple instances of bank fraud, with claims of diversion of public funds running into tens of thousands of crores. Anil Ambani himself has been questioned by the ED on several occasions in connected matters, though he has maintained that he resigned from relevant boards years ago. The agency continues to trace the flow of allegedly laundered funds and examine the roles of various individuals and entities.

The arrests highlight the ongoing regulatory scrutiny of the Reliance Group’s financial dealings following the collapse or distress of several of its flagship companies. Analysts note that such probes often involve complex trails of inter-company transactions, offshore entities, and loan defaults that have impacted public sector banks. While the group has faced significant debt restructuring and asset sales in recent years, these enforcement actions underscore the authorities’ focus on accountability in high-value banking fraud cases.

The case remains under active investigation, with the ED expected to file supplementary chargesheets as more details emerge. The developments are being closely watched by markets and the corporate sector, given the scale of the alleged fraud and its implications for corporate governance and banking sector health in India. Further updates are anticipated as the court proceedings and probe progress.

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