The Delhi High Court has granted regular bail to former Anil Dhirubhai Ambani Group executive Amitabh Jhunjhunwala in a money laundering case linked to an alleged bank loan fraud. Justice Madhu Jain cited Jhunjhunwala’s age and medical circumstances while applying the sick-or-infirm exception under the Prevention of Money Laundering Act. The court noted his spinal condition, osteoporosis, rehabilitation needs and pre-existing cardiac condition. Jhunjhunwala must furnish a ₹1 lakh personal bond with two sureties and comply with restrictions including surrendering his passport.

Delhi High Court Grants Bail to Amitabh Jhunjhunwala in Money Laundering Case

Delhi High Court grants bail to former Anil Dhirubhai Ambani Group executive Amitabh Jhunjhunwala on grounds of age and medical condition under PMLA’s sick-or-infirm exception.

The Delhi High Court has granted bail to former Anil Dhirubhai Ambani Group senior executive Amitabh Jhunjhunwala in a money laundering case related to an alleged bank loan fraud.

Justice Madhu Jain granted regular bail on medical grounds, noting that the 70-year-old accused needed structured and continuing medical care under the statutory exception in the Prevention of Money Laundering Act.

The Enforcement Directorate arrested Jhunjhunwala on April 15. The agency argued against his plea that his condition was still supervised and did not meet the statutory threshold of sick or infirm.

In its September 22 decision, the court noted the claimant was advanced in age, had significant spinal pathology, osteoporosis, a need for supervised rehabilitation, and a pre-existing cardiac condition that requires ongoing medical management.

Justice Madhu Jain rejected the argument that the medical exception could be invoked in a proper bail application only if there was irreversible illness or immediate danger to life under Section 45(1).

The court stated that the aim of the exception was not to wait until treatment had been inadequate, leading to irreversible consequences, but to intervene when the circumstances warranted relief on medical grounds.

Jhunjhunwala was asked to deposit a personal bond of Rs 1 lakh and two sureties of the same amount. His passport must be handed over, and he cannot leave India without permission.

He was also forbidden to influence witnesses or tamper with evidence. The Enforcement Directorate had contended that recommended treatment and tests were available in government hospitals and custodial medical facilities.

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Money Laundering Probe Involves Reliance Finance Companies

The case is based on Central Bureau of Investigation FIRs against Reliance Commercial Finance Limited and Reliance Home Finance Limited for diverting funds through associated companies.

Funds raised by Reliance Home Finance Limited and Reliance Commercial Finance Limited were allegedly routed through networks of shell/group entities, the Enforcement Directorate said.

The agency has alleged that such entities disbursed Rs 15,933.65 crore, after which Reliance Home Finance Limited and Reliance Commercial Finance Limited defaulted on obligations.

It was further alleged in the investigation that several entities were used as conduits for diversion and layering of funds, which is the basis of money laundering allegations under the Prevention of Money Laundering Act.

But there is still debate on Jhunjhunwala’s role. The Enforcement Directorate says he is a director and vice chairman of Reliance Capital and Group Managing Director of the Reliance Anil Dhirubhai Ambani Group companies.

He was in control and supervision of Reliance Capital and its subsidiaries, including Reliance Home Finance Limited and Reliance Commercial Finance Limited, the agency said.

This is denied by Jhunjhunwala, who says he was only a non-executive vice-chairman of Reliance Capital, held no position in either of the subsidiaries and was not on any of the loan approval committees.

He also denies any involvement in the transactions under investigation. The bail order is not a finding of guilt or a final adjudication of the allegations in question.

Case Timeline and Next Proceedings

Jhunjhunwala was arrested first and taken into Enforcement Directorate custody and then to judicial custody on April 20. On June 12, the prosecution presented its complaint.

The court record stated that he was later arrested by the Central Bureau of Investigation in two separate cases linked to investigations into the Reliance Anil Dhirubhai Ambani Group.

The Delhi High Court decision pertains to custody and medical issues, while charges of financial diversion and money laundering are to be dealt with in subsequent proceedings and judicial scrutiny.

Sprouts News will follow up on further court proceedings, investigative developments and other orders concerning Jhunjhunwala, Reliance Home Finance Limited, Reliance Commercial Finance Limited and other entities.