A Delhi court on Saturday sent former Reliance Communications senior executive Gautam Bhailal Doshi to five days of Enforcement Directorate custody in a money laundering case linked to alleged diversion of loan funds worth over ₹40,000 crore. According to reports from Business Standard, Special Judge Gaurav Rao was hearing the agency's plea seeking Doshi's custody for 14 days. Doshi was produced at the judge's residence at around 8:15 am after he was arrested and taken to Delhi from Bombay on transit remand. Vacation Judge Gaurav Rao ordered on June 13 that the accused be remanded to ED custody until June 18, 2026, at or before 04:00 p.m. before the Vacation Judge, Rouse Avenue District Courts, New Delhi. The court granted custody after considering the submissions of ED, the nature of the allegations and to unearth the complete conspiracy as well as establish the complete fund trail, their recovery, role of other individuals involved.
The ED investigation has revealed a comprehensive fund trail involving diversion of loan funds from Reliance ADA Group entities to foreign remittances, offshore companies and foreign bank accounts. As reported by Business Standard, the agency alleged that loans availed from banks were not utilised for their intended purposes and were instead invested in mutual funds and transferred to group companies. The court noted that the investigation has established a fund trail showing diversion of loan funds from RAAG to foreign remittances, foreign banks and offshore companies. The Primary allegations are that the credit facilities availed by RCOM, M/s Reliance Telecom Ltd. and M/s Reliance Infratel Ltd., together referred as Reliance Anil Dheerajlal Ambani Group (RAAG) from a consortium of banks, through multiple banking arrangements by misrepresentation and deception. The ED also alleged that RAAG undertook credit facilities from non-consortium banks during the same period, which comprises a set of interconnected transactions. The investigation has revealed that after disbursal of the said facilities, the bank funds were misappropriated by entering into transactions which were in violation of the terms and conditions of the sanction of the credit facilities.
The ED told the court that Doshi occupied a position of substantial authority and control within the Reliance ADA Group and was closely associated with its financial, corporate and offshore operations. According to Business Standard, Doshi functioned as one of the Group Managing Directors of the Reliance ADA Group, was a director of Reliance Telecom Ltd during the relevant period and also served as a member of its audit committee. The probe agency claimed that key information relating to financial operations was regularly escalated to Doshi and functioned under his supervision. The investigation reveals that Doshi exercised banking authority over 161 bank accounts maintained by 105 group entities and was entrusted with responsibilities relating to overseas financing arrangements, FCCB issuances, foreign bank accounts and offshore corporate structures. The court noted that the material collected during the investigation demonstrates that the accused was not a passive or nominal functionary but occupied a position from which he exercised significant influence and control over group entities, banking arrangements and offshore structures. The ED stated that custodial interrogation is essential to uncover the complete mechanism adopted for acquisition, possession, concealment, layering, routing and dissipation of proceeds of crime.
The defence opposed the ED's remand plea, arguing that no justifiable grounds existed either for Doshi's arrest or for granting custodial remand. As reported by Business Standard, senior defence counsel submitted that Doshi had cooperated throughout the investigation and had appeared before the agency after recording of his statement under Section 50 of the PMLA on January 27 this year. The defence also cited Doshi's advanced age around 74 years and his medical ailments while opposing the ED's demand for 14-day custody. The defence argued that considering his age and medical conditions, he may not be remanded to custody for 14 days as sought by ED. As requested by Defence Counsel, the accused was provided with a writing pad and writing material, though the court declined the request for shaving equipment considering security issues involved. The court noted that the evidence collected during investigation, including the email dated September 21, 2012, enclosing "Company Details.xls", board records, audit committee records, financial statements, banking records and statements recorded under Section 50 of the PMLA, demonstrates that the accused was not a passive or nominal functionary but occupied a position from which he exercised significant influence and control over group entities, banking arrangements and offshore structures.
