A Delhi court has denied bail to former Reliance Anil Dhirubhai Ambani Group (ADAG) senior executive Amitabh Jhunjhunwala in a money laundering case involving alleged diversion of more than Rs 11,000 crore linked to Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL). Special Judge Vishal Pahuja of the Rouse Avenue Court dismissed Jhunjhunwala’s regular bail application, observing that he was alleged to be the “principal architect” of the offence and had exercised control over staff members who are now witnesses in the case. The court said the Enforcement Directorate’s apprehension that Jhunjhunwala could influence witnesses or tamper with evidence could not be ignored, particularly as the investigation was still underway. Considering the nature and gravity of the allegations, it found insufficient grounds to release him on bail at this stage.
Bail sought on health grounds
Jhunjhunwala, around 70, had primarily sought bail on medical grounds, invoking the provision under the Prevention of Money Laundering Act that provides an exception to the stringent bail conditions for a person who is sick or infirm.
His lawyers argued that he suffers from several ailments, including heart-related problems, hypertension, orthopaedic and degenerative musculoskeletal conditions and lower-back pain arising from a vertebral compression fracture. The defence also pointed out that Jhunjhunwala, a chartered accountant, had an unblemished professional record spanning nearly five decades and had not faced criminal proceedings before his arrest in the present case.
The defence further submitted that he had spent more than four months in custody and that the investigation concerning him had been completed, with the ED filing its prosecution complaint on June 12.
The ED opposed the plea, maintaining that Jhunjhunwala had been receiving continuous medical treatment since his arrest. It argued that the seriousness of the alleged offence, his former position within the Reliance ADAG Group and his alleged influence over former employees who are witnesses weighed against granting him bail.
ED alleges massive fund diversion
Jhunjhunwala and former Reliance Capital chief financial officer and chief operating officer Amit Bapna were arrested by the ED on April 15 and subsequently remanded to judicial custody.
The agency alleges that public money raised by RHFL and RCFL was systematically diverted through a network of shell entities. In earlier court submissions, the ED pegged the alleged proceeds of crime at more than Rs 11,600 crore — around Rs 5,407 crore linked to RHFL and Rs 6,280 crore to RCFL.
Investigators have alleged that nearly 90 per cent of certain corporate loans were routed to shell entities through dozens of loan accounts, with lending norms and due-diligence requirements allegedly bypassed.
The ED filed its prosecution complaint against Jhunjhunwala, Bapna and 53 others, including companies, on June 12. The Rouse Avenue Court subsequently issued pre-cognisance notices to the accused named in the complaint.
Jhunjhunwala has denied wrongdoing, with his defence earlier maintaining that he had no role in loan-sanctioning decisions, did not personally benefit from the transactions and had cooperated with the investigation.