The Rouse Avenue court in New Delhi has denied interim bail to Punit Garg, former Director of Reliance Communications (RCom) Ltd, on medical grounds within an alleged Rs 40,000 crore money laundering investigation.
Garg sought interim bail to undergo medical examinations and treatment at a private hospital, citing the need for intensive examination and capsule endoscopy following treatment at Kokilaben Dhirubhai Ambani Hospital in Mumbai prior to his arrest.
Special Judge Ajay Gupta rejected the plea on April 20 after reviewing a report by a medical board from the All India Institute of Medical Sciences (AIIMS). The judge stated, “Thus, in view of the reports given by the Medical Board of AIIMS, it is clear that at this stage, the applicant is not required to undergo the medical test, however, in case, same would be required, then in that case, the accused would be taken to the concerned Government Hospital as per the afore mentioned jail referral policy.”
He further added, “Keeping in view of the aforesaid facts and circumstances, this court does not find any merit in the aforesaid prayer of the applicant seeking permission to undergo the capsule endoscopy test at the private hospitals. Consequently, the present application is liable to be dismissed; accordingly, the same is hereby dismissed.”
Garg, a 61-year-old senior citizen, suffers from multiple serious medical conditions, including inflammatory bowel disease (Crohn’s Colitis), irreversible and degenerative osteoporosis in the lumbar spine, osteopenia in his femoral neck and left forearm, hypertension since 2018, enlarged prostate with progressive obstructive voiding, arthritis, and an adjustment disorder requiring specialised medical care and regular follow-ups with multiple specialists. It was argued that medical facilities in jail are inadequate to address these conditions and that he requires immediate hospitalisation.
Senior advocate Manu Sharma represented Garg. The bail plea was opposed by Special Counsel Zoheb Hossain and Pranjal Tripathi on behalf of the Enforcement Directorate (ED).
The ED has filed a chargesheet against Garg following his arrest on January 29, 2026. His arrest was made under the Prevention of Money Laundering Act (PMLA), 2002, as part of an investigation concerning over Rs 40,000 crore bank fraud and money laundering involving RCom and associated entities. The investigation originated from a Central Bureau of Investigation (CBI) First Information Report (FIR) dated August 21, 2025, regarding offences under Sections 120-B, 406, and 420 of the Indian Penal Code and Sections 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988.
Punit Garg held various senior roles at RCom, serving as President handling Global Enterprise Business from 2006 to 2013, President (Regulatory Affairs) from 2014 to 2017, Executive Director from October 2017, and non-Executive Director from April 2019 to April 2025, according to the ED.
The Enforcement Directorate’s investigation revealed that Garg was actively involved in the acquisition, possession, concealment, layering, and dissipation of proceeds of crime generated by the bank fraud during his tenure from 2001 to 2025. Proceeds were allegedly diverted through multiple foreign subsidiaries and offshore entities.
The ED further alleged that funds were used to purchase a luxury condominium in Manhattan, New York, which was fraudulently sold during RCom’s Corporate Insolvency Resolution Process (CIRP) by Garg. It was reported that US$ 8.3 million from the sale was transferred from the United States to a Dubai-based entity controlled by a Pakistan-linked individual through a sham investment arrangement, without the Resolution Professional’s knowledge or consent.
Additionally, the investigation uncovered that part of the diverted funds, originating from bank loans to RCom, were used for Garg’s personal expenses, including payments related to his children’s overseas education.