Punit Garg Bail Plea: Breaking Update As Delhi HC Seeks ED Response In ₹40,000 Crore Case

Delhi High Court Seeks ED Response on Punit Garg Bail Plea

The Delhi High Court has sought a response from the Enforcement Directorate (ED) on the Punit Garg bail plea in the alleged ₹40,000 crore money laundering case linked to Reliance Communications (RCOM). The matter was heard by Justice Prateek Jalan, who directed the ED to file its response after hearing preliminary submissions from both sides.

The Punit Garg bail plea comes after the trial court rejected his earlier application while taking cognizance of the Enforcement Directorate’s chargesheet. Garg, a former Director of Reliance Communications, was arrested by the ED on January 29, 2026, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The latest hearing marks another significant development in one of India’s biggest alleged financial fraud and money laundering investigations involving more than ₹40,000 crore.

Background of the ₹40,000 Crore Money Laundering Case

The investigation began after the Central Bureau of Investigation (CBI) registered an FIR on August 21, 2025, alleging criminal conspiracy, cheating, criminal breach of trust, and corruption in relation to loans obtained by Reliance Communications and its group companies.

Based on the CBI FIR, the Enforcement Directorate initiated its own investigation by registering an Enforcement Case Information Report (ECIR). During the course of the probe, investigators alleged that proceeds of crime amounting to thousands of crores were diverted through a network of foreign subsidiaries and offshore entities.

The ED claims that these transactions were carefully layered to disguise the origin of funds before being utilized for various purposes, including overseas investments and personal expenses.

Why the Punit Garg Bail Plea Was Filed

The Punit Garg bail plea challenges the trial court’s decision rejecting his regular bail after the filing of the ED’s chargesheet.

Earlier, Garg had also requested interim bail on medical grounds. He argued that he suffers from several serious health conditions requiring specialized treatment at a private hospital.

According to his legal team, Garg had previously received treatment at Mumbai’s Kokilaben Dhirubhai Ambani Hospital and required additional medical investigations, including capsule endoscopy. His lawyers maintained that the healthcare facilities available inside jail were inadequate to manage his multiple chronic illnesses.

However, after examining reports submitted by a medical board constituted at AIIMS, the trial court rejected his request.

AIIMS Medical Board Report

While dismissing the interim medical bail application, the Special Court relied heavily on the report prepared by doctors at the All India Institute of Medical Sciences (AIIMS).

The medical board concluded that immediate capsule endoscopy was not necessary. The court further observed that if future medical examinations became necessary, the accused could be taken to a government hospital in accordance with the applicable jail referral policy.

As a result, the court declined permission for treatment at a private hospital and dismissed the application.

Medical Conditions Cited by the Defence

During Punit Garg bail plea arguments, the defence highlighted several medical issues affecting the 61-year-old former executive.

According to submissions made before the court, Garg is suffering from:

Crohn’s colitis (Inflammatory Bowel Disease)
Degenerative osteoporosis
Osteopenia
Hypertension
Enlarged prostate
Arthritis
Adjustment disorder

The defence argued that these conditions require continuous monitoring by multiple specialists and cannot be adequately managed within the existing prison healthcare system.

These medical grounds continue to form part of the broader arguments supporting the Punit Garg bail plea.

ED’s Allegations Against Punit Garg

The Enforcement Directorate alleges that Punit Garg played a key managerial role in Reliance Communications over several years.

According to the investigation, he served in multiple senior positions including:

President of Global Enterprise Business (2006–2013)
President (Regulatory Affairs) (2014–2017)
Executive Director (October 2017 onward)
Non-Executive Director (April 2019 to April 2025)

The agency claims that during his tenure, he actively participated in acquiring, possessing, concealing, layering, and dissipating the proceeds of crime generated from the alleged bank fraud.

The ED further alleges that money borrowed from public sector banks was illegally diverted instead of being used for legitimate business operations.

Overseas Diversion of Funds

One of the most significant allegations involves the diversion of funds through multiple foreign subsidiaries and offshore companies.

According to the ED, part of the proceeds of crime was allegedly used to purchase a luxury condominium apartment in Manhattan, New York.

Investigators also claim that during the Corporate Insolvency Resolution Process (CIRP) of Reliance Communications, the property was sold without the knowledge or approval of the Resolution Professional.

The sale reportedly generated approximately USD 8.3 million, which investigators allege was routed through a sham investment arrangement involving a Dubai-based entity linked to a Pakistan-connected individual.

The agency is investigating whether these transactions formed part of a larger money laundering network.

Alleged Personal Benefits

Apart from foreign investments, the ED also alleges that part of the diverted public money was utilized for Punit Garg’s personal expenses.

According to Punit Garg bail plea investigators, these expenditures included payments related to the overseas education of his children.

The Enforcement Directorate considers these transactions as part of the alleged proceeds of crime and continues to investigate the complete money trail.

Trial Court Proceedings

On June 15, the Rouse Avenue Court took cognizance of the Enforcement Directorate’s prosecution complaint (chargesheet) against Punit Garg and other accused persons.

The court simultaneously rejected his regular Punit Garg bail plea, prompting him to approach the Delhi High Court.

During the latest hearing, Justice Prateek Jalan issued notice to the Enforcement Directorate and sought its response before proceeding further with the matter.

The High Court is expected to hear detailed submissions from both sides during the next stage of proceedings.

What Lies Ahead

The Punit Garg bail plea is likely to remain under close legal scrutiny as the Delhi High Court considers the arguments presented by both the defence and the Enforcement Directorate.

While the defence continues to emphasize Garg’s age, medical condition, and need for specialized treatment, the ED maintains that the allegations involve an extensive money laundering operation connected to an alleged bank fraud exceeding ₹40,000 crore.

The High Court’s eventual decision on the Punit Garg bail plea could influence the future course of proceedings, although the criminal investigation and prosecution under the Prevention of Money Laundering Act will continue independently.

As the investigation progresses, authorities are expected to further examine the alleged diversion of bank funds, overseas transactions, offshore entities, and the complete money trail associated with Reliance Communications and its former executives.