Former Reliance Capital Executive Accuses ED of Selective Targeting in Rs 11,500 Crore Case
Amitabh Jhunjhunwala, a former close associate of Anil Ambani and ex vice-chairperson of Reliance Capital, has made serious allegations against the Enforcement Directorate (ED) following his arrest on Wednesday. In a submission before the special court at Rouse Avenue district court, Jhunjhunwala claimed the agency has indulged in "pick and choose" by arresting him instead of pursuing the "actual beneficiary of Rs 11,500 crore" of proceeds of crime.
Emails Show Instructions Came from Top Management, Says Defense
Appearing for Jhunjhunwala, senior advocate Sidharth Agarwal presented emails seized and produced by ED as evidence. These communications, according to the defense, demonstrate that all decisions regarding corporate loans under investigation for alleged money laundering were taken at the instructions of Anil Ambani himself.
"Bare perusal of the email dated May 15, 2017, would reveal that whenever any email was sent, it was copied to higher-ups such as Anil Ambani, Lalit Jalan, etc," Jhunjhunwala's counsel told the court. "In the email, there is reference to 'ADA', and the investigating agency did not investigate on these aspects. Each and every instruction was given by 'ADA' and the top management, and at the most the accused has only passed the instructions from the top management."
Court Grants ED Custody for Further Investigation
Despite these arguments, the special court prima facie accepted ED's charges and sent both Jhunjhunwala and Amit Bapna, another former senior executive of the Reliance group, to five days of ED custody for further interrogation.
Special judge Hasan Anzar observed, "The material on record indicates that there is imminent possibility of involving some other persons and the entire money trail of about Rs 11,500 crore is required to be traced so that the proceeds of crime are recovered."
Defense Claims Clients Were Made Witnesses in CBI Case
Both Jhunjhunwala and Bapna pleaded for relief from arrest, arguing they had been made witnesses in the predicate offence case registered by the Central Bureau of Investigation (CBI). This CBI case formed the basis for ED's subsequent money laundering investigation.
Jhunjhunwala's counsel emphasized that the enforcement agency hasn't caught the "actual culprit" who had allegedly indulged in money laundering from Anil Ambani group entities.
Anil Ambani Spokesperson Points to PMLA Definition
Reacting to Jhunjhunwala's claims, a spokesperson for Anil Ambani referred to paragraph 24 of the special court's order. This section points to the definition of PMLA section 3, which states that "whoever directly or indirectly attempts to indulge or knowingly assist or is involved in any process or activity connected with proceeds of crime, including its concealment, acquisition or use shall be guilty of the offence of money laundering."
ED Alleges Preconceived Scheme to Divert Public Money
In its submission to the court, ED stated that its investigation has revealed "a preconceived and well-planned scheme to divert/siphon off of public money from Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL) through shell/paper companies."
The agency alleged these companies were operated and controlled by Reliance Anil Ambani group under the pretext of corporate loans, thereby cheating banks, shareholders, investors and other public institutions.
Substantial Financial Defaults Under Scrutiny
The case involves significant financial defaults. RHFL had defaulted on more than Rs 7,500 crore, of which lender banks had recovered Rs 2,200 crore after resolution. The remaining balance of over Rs 5,300 crore constitutes the proceeds of crime according to the investigation.
This complex financial investigation continues to unfold as ED seeks to trace the complete money trail of approximately Rs 11,500 crore while the defense maintains that key decision-makers have not been adequately pursued in the probe.
