Mumbai: The Enforcement Directorate (ED) has arrested two former senior executives of the Reliance Anil Ambani Group in connection with a money laundering investigation linked to an alleged bank fraud case involving Reliance Telecom . The arrests mark a significant development in the ongoing probe into alleged diversion and laundering of bank funds.
Former Reliance executives arrested
The ED on Friday arrested Satish Seth, former Group Managing Director of the Reliance Anil Ambani Group and former Vice-Chairman of Reliance Infrastructure, in Mumbai.
Officials said Seth, who also served as a director of Reliance Telecom, has been granted a 48-hour transit remand and will be produced before a Delhi court for further proceedings.
The agency also arrested Gautam Doshi, another former Group Managing Director of the Reliance Anil Ambani Group and former director of Reliance Telecom, in the same case.
Doshi was taken into custody in Mumbai and is also being brought to Delhi for further legal proceedings.
Neither the ED nor the Reliance Anil Ambani Group had issued an official statement on the arrests at the time of publication.
Case linked to CBI FIR
The ED’s money laundering investigation stems from a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) in March this year.
According to the CBI, the case was registered against Reliance Telecom Ltd., Satish Seth, Gautam Doshi, unknown public servants and other unidentified individuals on charges including criminal conspiracy, cheating and alleged misuse of official position under relevant laws.
The investigation was initiated following a complaint filed by the State Bank of India (SBI), which alleged that the bank suffered a wrongful loss of Rs 114.98 crore.
The CBI stated that the alleged fraud was connected to loans sanctioned to Reliance Telecom by a consortium of 11 banks.
Loan facilities under scrutiny
According to investigators, SBI was part of a consortium that sanctioned term loan facilities worth Rs 735 crore to Reliance Telecom.
Following the registration of the case, the CBI conducted searches at the residences of Satish Seth and Gautam Doshi in Mumbai, as well as at the registered office of Reliance Telecom.
The agency has been examining the circumstances surrounding the utilisation of the loan funds and whether any financial irregularities occurred during the process.
ED probe expands across multiple complaints
The ED launched its investigation based on multiple FIRs registered by the CBI following complaints from SBI, Punjab National Bank, Bank of Baroda and the Life Insurance Corporation of India (LIC).
The agency is also examining allegations involving Reliance Communications (RCOM), Anil Ambani and several associated entities.
Officials noted that a Special Investigation Team (SIT) constituted under directions of the Supreme Court is also investigating matters related to alleged diversion and laundering of public and bank funds involving companies linked to the Reliance Anil Ambani Group.
Assets worth over Rs 19,000 crore attached
The ED has already taken substantial action in related investigations.
In May, the agency provisionally attached assets worth Rs 3,034.90 crore in the Reliance Communications bank fraud case.
With this attachment, the total value of assets attached in various Reliance Anil Ambani Group-related cases has crossed Rs 19,344 crore, according to officials.
Investigators have stated that Reliance Communications and its group companies availed loans from domestic and international lenders, with total outstanding dues estimated at approximately Rs 40,185 crore.
Reliance Group’s earlier response
Following earlier questioning by the CBI, the Reliance Anil Ambani Group had clarified that Satish Seth, Gautam Doshi and Amitabh Jhunjhunwala were no longer associated with the group.
The company stated that all three executives had served the organisation for more than 15 years and held senior leadership positions across various group entities.
According to the group’s earlier statement, Satish Seth is currently involved in real estate and software ventures, while Gautam Doshi heads a tax and mergers and acquisitions advisory firm and serves on the boards of several major companies.
Amitabh Jhunjhunwala, who was arrested by the CBI in June in connection with the case, is presently engaged in fund management operations based in Dubai and Singapore.
Investigation continues
The arrests of Satish Seth and Gautam Doshi represent the latest development in the widening investigation into alleged financial irregularities involving Reliance Telecom and related entities.
Officials indicated that the probe remains ongoing and further action could follow depending on the findings of the investigation. The accused will be produced before the appropriate courts as the ED seeks further custody for questioning.