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The Enforcement Directorate has arrested former senior executives of the Anil Dhirubhai Ambani Group, Amitabh Jhunjhunwala and Amit Bapna, in a money laundering case linked to alleged loan diversion at Reliance Home Finance and Reliance Commercial Finance. The probe focuses on loans given to weak entities and routed through shell companies. Authorities suspect senior-level involvement in approvals. The case follows earlier action by the CBI and is part of a wider investigation into financial irregularities and fund misuse within group companies.
The Enforcement Directorate (ED) has arrested former senior executives of the Anil Dhirubhai Ambani Group, Amitabh Jhunjhunwala and Amit Bapna, in connection with a money laundering investigation related to alleged irregularities in lending operations of group financial companies. Advertisement
The arrests were carried out in Mumbai after detailed questioning under the Prevention of Money Laundering Act. The agency produced both individuals before a special court and sought their custody to further examine their role in the case and trace the movement of funds.
The investigation is focused on Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL), which are part of Reliance Capital. According to officials, loans were sanctioned to multiple entities that had weak financial backgrounds and limited business activity. These entities are suspected to be shell or dummy companies used to divert funds.
ED findings suggest that the loan approval process did not follow standard risk assessment practices. Funds were allegedly routed through layered transactions, making it difficult to identify the final beneficiaries. Officials believe that these transactions were structured in a way that avoided immediate detection and allowed diversion of large sums.
Amitabh Jhunjhunwala, who held a senior leadership position as vice-chairman and director at Reliance Capital, was involved in key financial decisions within the group. Amit Bapna, who served in roles including chief financial officer and director in group companies, is suspected to have played a role in the sanctioning and disbursal of loans to these entities.
The agency is also examining whether internal approvals were influenced or bypassed and whether due diligence norms were relaxed. Investigators are reviewing documents, financial records, and communication trails to establish accountability at different levels of management.
The case is linked to a broader investigation into alleged financial misconduct within the group. In the past few weeks, the Central Bureau of Investigation registered cases involving an estimated loss of around INR 3,750 crore to a public sector insurer due to investments in group companies. This adds another layer to the ongoing scrutiny of financial transactions associated with the group.
Officials indicated that the overall suspected fraud could involve significantly higher amounts, and further action may follow as more evidence is examined. The ED has also been tracking assets and financial linkages connected to the case to identify the extent of fund diversion.
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