New Delhi: The Directorate of Enforcement (ED) has filed a supplementary prosecution complaint under the Prevention of Money Laundering Act (PMLA), 2002 before the special court (PMLA), Rouse Avenue District Courts, New Delhi, in the case of Reliance Communications Limited.
The supplementary complaint is in continuation of the first prosecution complaint dated March, 2026, the ED said in a release.
“M/s Reliance Communications Limited (RCOM), M/s Reliance Telecom Limited (RTL), Gautam Bhailal Doshi, Sateesh Seth, Amitabh Jhunjhunwala and others have been arraigned as accused for offences under Section 3 and Section 3 read with Section 70, punishable under Section 4 of the PMLA, 2002,” the statement said.
“ED initiated investigation on the basis of multiple FIRs registered by CBI, Banking Securities and Fraud Branch, New Delhi, on complaints from banks and financial institutions. The scheduled offences concern the fraudulent availing and diversion of fund-based and non-fund-based credit facilities by RCOM, RTL and Reliance Infratel Limited. The investigation covers multiple interconnected transactions.
ED investigation revealed that fresh credit facilities were repeatedly used fraudulently to repay, rotate and evergreen earlier domestic and foreign liabilities instead of the sanctioned end-use,” it said.
“Funds were layered through group companies, purpose-built conduit entities, multiple bank accounts and liquid mutual funds; used to service earlier External Commercial Borrowings and Foreign Currency Convertible Bonds (FCCB); and projected as legitimate business expenditure or receipts,” it further added.
According to the agency, investigation further revealed that the fraudulent scheme had commenced much earlier, at least by 2007, and continued thereafter as one connected and continuing course of criminal activity.
“Loan proceeds were diverted to group companies such as M/s Reliance Infrastructure Ltd. and M/s Reliance Capital Ltd.; they were also siphoned off to purchase personal assets for the promoters outside India; and serviced to artificially inflate profits for RCOM.
The Proceeds of Crime are quantified at Rs 40,185.55 Crore, being the total outstanding amount which has been defaulted by the borrower entities to consortium banks, financial institutions and bondholders. Distinct roles to the accused in the raising, deployment, concealment and projection of the funds, including false certification of the end-use of US$ 1 Billion in FCCB proceeds have been brought out,” the ED has said.
The agency has also spoken about attachment of property and arrest of accused.
“Confiscation of properties worth Rs 8,078.06 crores attached and confirmed by the adjudicating authority have been prayed for. The properties include leasehold and immovable assets in New Delhi, Navi Mumbai, Bhubaneswar, Chennai and Pune. In this ECIR, Gautam Bhailal Doshi was arrested on 12.06.2026 and Sateesh Seth was arrested on 09.07.2026; both are in judicial custody,” the ED said.
The special court took cognizance of the main prosecution complaint in this case on June 15, 2026. Further investigation is underway.