A Delhi court has rejected former Reliance Capital vice-chairman Amitabh Jhunjhunwala’s bail plea in an Enforcement Directorate money laundering investigation involving companies linked to Reliance ADAG. Special Judge Vishal Pahuja cited the ongoing investigation and concerns that witnesses could potentially be influenced. The ED alleges that funds from Reliance Home Finance and Reliance Commercial Finance were diverted through corporate loans to companies allegedly controlled by group-linked entities. Jhunjhunwala’s bail rejection does not constitute a final finding of guilt, with the allegations remaining subject to legal proceedings.
Amitabh Jhunjhunwala Bail Plea Rejected in ₹11,000 Crore Money Laundering Case
A Delhi court has dismissed the bail plea of former Reliance Capital vice-chairman Amitabh Jhunjhunwala, citing the fear of witness tampering and an ongoing probe in the ₹11,000 crore money laundering case.
The case of money laundering involving Amitabh Jhunjhunwala took another turn, as a Delhi court rejected the bail of the former Reliance executive because the investigation was not over.
Special judge Vishal Pahuja of Rouse Avenue Court passed the order on Saturday, rejecting Jhunjhunwala’s plea after considering arguments relating to his health and custody.
The Enforcement Directorate arrested Jhunjhunwala, who is a former vice-chairman of Reliance Capital and a senior executive in Anil Ambani’s Reliance ADAG group, on April 15.
He was arrested along with former Reliance Capital chief financial officer Amit Bapna in an Enforcement Directorate probe into companies associated with Reliance Anil Ambani.
The federal agency has alleged that Jhunjhunwala, in connivance with Amit Bapna and others, diverted funds of Reliance Home Finance Ltd and Reliance Commercial Finance Ltd.
The Enforcement Directorate said the funds were allegedly siphoned off through corporate loans given to companies virtually controlled by Reliance Anil Ambani Group companies.
Enforcement Directorate’s allegations against Amitabh Jhunjhunwala
The Enforcement Directorate alleged that about 90% of the corporate loans were given to shell companies, in violation of the applicable prudential norms on lending.
The agency has also labelled Jhunjhunwala as a director of Reliance Capital Ltd., the holding company of Reliance Home Finance Ltd. and Reliance Commercial Finance Ltd.
Jhunjhunwala was a principal decision-maker involved in various transactions at Reliance Capital during the period under investigation, the agency said.
The court order comes when the investigation is still on, and the prosecution has argued that Jhunjhunwala’s release could create a possibility of influencing staff members who could be witnesses.
The court said the Enforcement Directorate's concerns could not be ignored, particularly after the agency described Jhunjhunwala as the alleged “principal architect” of the crime.
The court’s observation is not a conclusive determination of guilt as the alleged facts are still subject to proceedings and adjudication under the applicable law.
Medical grounds form basis of bail plea
During the course of proceedings, Jhunjhunwala’s counsel, senior advocate Raghav Gupta, sought bail only on medical grounds, relying on the exception under Section 45 of PMLA.
Gupta argued that Jhunjhunwala was a “sick” or “infirm” person and therefore deserved to be considered beyond the twin conditions that usually apply to the grant of bail under the Prevention of Money Laundering Act.
His lawyer told the court he has a history of heart problems, orthopaedic problems, a degenerative musculoskeletal condition, hypertension, and lower back pain from a compression fracture.
The defence also argued that Jhunjhunwala’s health deteriorated in custody, with rapid weight loss and other health problems requiring specialised medical treatment.
Therefore, the medical argument was the main focus of the bail plea, with the defence arguing that continued custody was affecting Jhunjhunwala’s health and needed more medical intervention.
Also Read: ED Searches TMC Rajya Sabha MP Nadimul Haque’s Residence in Probe.
Court considers jail medical facilities and treatment
The Enforcement Directorate, represented by senior advocate Zoheb Hossain, opposed the bail on medical grounds and said the required treatment was already being provided in custody.
Jhunjhunwala has been provided medical treatment through a jail hospital and was also taken to Lok Nayak Jai Prakash Hospital and AIIMS for consultations, the agency told the court.
The prosecution argued that no medical record available suggested that the petitioner was suffering from a disease which was life-threatening or life-endangering so as to make extended judicial custody medically impermissible.
The Enforcement Directorate further submitted that proper medical care and attention were being regularly provided and hence, bail on medical grounds was not required at the present stage.
The court accepted the agency’s submissions in its order and observed that Jhunjhunwala had been given requisite medical attention whenever required through the jail hospital and referral hospitals.
The court specifically mentioned LNJP and AIIMS Hospital while concluding that the health concerns raised by the defence could be taken care of by the medical facilities available within custody.
The court said Jhunjhunwala had failed to prove that his medical condition was not curable through the custodial medical infrastructure and referral hospitals available.
₹11,000 crore probe remains under investigation
The court also took into account the larger setting of the case, such as the possibility of Jhunjhunwala influencing the staff members identified as witnesses in the ongoing investigation.
The court, while considering the release of Jhunjhunwala from judicial custody, felt that the prosecution had a point while the probe by the Enforcement Directorate was still on.
The case is part of a wider financial probe into Reliance-linked companies including Reliance Capital, Reliance Home Finance and Reliance Commercial Finance.
Jhunjhunwala is also facing proceedings in another case related to alleged financial irregularity of ₹2,929 crore relating to Reliance Communications, the report added.
Separately, in another legal development involving the former executive, a Delhi court had issued a fresh transit warrant for Jhunjhunwala in connection with that ₹2,929 crore RCom case.
Sprouts News will continue to distinguish, for those following the case, between allegations made by investigating agencies, representations made by the defence and findings formally recorded by courts.
The immediate fallout is that Jhunjhunwala remains behind bars, and the Enforcement Directorate continues its probe into the alleged diversion of funds and related money laundering charges.
We can expect further proceedings to assess the impact of the evidence, medical circumstances, witness considerations, and statutory requirements under the PMLA on the case as it progresses.
