ED arrests 2 former Anil Ambani Group executives in loan ‘fraud’ probe

The Enforcement Directorate has arrested Amitabh Jhunjhunwala and Amit Bapna, former senior executives of the Anil Ambani-led Reliance Group, in connection with an alleged bank loan fraud and money laundering case. The arrests have been made under the Prevention of Money Laundering Act.

New Delhi: The Enforcement Directorate on Wednesday arrested Amitabh Jhunjhunwala and Amit Bapna, both former senior executives at industrialist Anil Ambani-led Reliance Group, in an alleged bank loan fraud and money laundering case, officials said.

The two were taken into custody under the Prevention of Money Laundering Act (PMLA) after questioning. The agency produced them before a court seeking their custody for detailed interrogation, they said.

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Jhunjhunwala was a vice chairman and director of Reliance Capital Ltd, the parent company of RHFL and RCFL. He is considered a close aide of Ambani.

Bapna served as a director of RHFL.

The probe pertains to an alleged bank loan fraud worth crores of rupees perpetrated through Anil Ambani group companies like Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Ltd (RHFL) using shell or dummy companies.

The money laundering case of the ED stems from FIRs filed by the Central Bureau of Investigation.