ED flags Rs 11,600 crore 'proceeds of crime' in RHFL, RCFL probe

Mumbai: The Enforcement Directorate (ED) has alleged that over ₹11,600 crore constitutes “proceeds of crime” in its ongoing money laundering probe into Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd, claiming that public funds were systematically diverted through a network of shell entities in violation of lending norms.

According to the agency, the alleged proceeds include ₹5,407.18 crore linked to RHFL and ₹6,280.47 crore tied to RCFL, arising from unpaid dues despite partial recoveries under resolution plans.

Making submissions before a special court in Delhi on Wednesday, the ED said nearly 90% of corporate loans were routed to shell entities across 98 loan accounts involving 45 companies. The agency sought custody of Amitabh Jhunjhunwala and Amit Bapna, describing them as key functionaries and close aides of Anil Ambani.


The court granted custody till April 20, observing that the case is at a “very initial stage” and the precise role of each accused is yet to be determined. It noted the possibility of involvement of additional persons and stressed the need to trace the entire money trail of about ₹11,500 crore to recover proceeds of crime.

In its filings, the ED alleged that general-purpose corporate loans were sanctioned in blatant disregard of prudential norms, with credit appraisal bypassed, no due diligence conducted, and approvals granted without proper oversight.

In the RHFL case, investigators said the company received ₹35,368.97 crore between 2015 and 2020, even as its 2018–19 financials showed liabilities of ₹12,728.89 crore, with nearly 80% of disbursements for non-housing purposes.

Following defaults, lenders entered into an inter-creditor agreement on July 6, 2019, under Reserve Bank of India (RBI) guidelines. While 33 banks had extended credit, recoveries have remained limited.

In a similar pattern, RCFL allegedly raised ₹1.13 lakh crore between FY16 and FY21, while its debt stood at ₹10,518.5 crore in FY19. After defaults, lenders led by Bank of Baroda initiated a resolution process, and the company was later acquired by Authum Investment and Infrastructure Ltd.

The ED alleged that ₹7,408.70 crore—around 83% of RCFL’s disbursements—was routed to 36 shell companies through 78 loan accounts.

According to the agency, Jhunjhunwala served as Director of Reliance Capital Ltd from 2003 to 2019 and as Vice Chairman from 2006, exercising significant control over fund-raising, cash flows and loan disbursals. The ED cited emails and statements to allege his role in directing funds to “paper” companies, in connivance with Bapna and others.

Highlighting the scale of the alleged fraud, the ED told the court that the accused are “influential” and could tamper with evidence or influence witnesses. It added that Jhunjhunwala moved to Dubai after resigning in 2019 and was stopped from leaving India on August 28, 2025, following a lookout circular.

Senior advocate Siddharth Agarwal, appearing for Jhunjhunwala, argued that the arrest was unjustified, noting his client had cooperated with the ED and was earlier treated as a witness. He said Jhunjhunwala, 70, had no role in loan decisions, derived no benefit, and has no control over records, making custody unnecessary, and added that findings of the Securities and Exchange Board of India (SEBI) were ignored.

Counsel Vijay Agarwal, appearing for Bapna, opposed the remand, arguing that his client was cited as a witness in the CBI charge sheet and cannot now be made an accused. He alleged suppression of SEBI orders, delay in initiating the ECIR, and reliance on statements of a co-accused, while asserting that Bapna derived no benefit and has cooperated with the probe.