The Delhi High Court has granted bail to former ADAG executive Amitabh Jhunjhunwala on medical grounds. The court cited his health as the basis for the decision amid an ongoing Enforcement Directorate probe into alleged loan fraud involving Reliance Home Finance and Reliance Commercial Finance.
The Delhi High Court has granted regular bail to Amitabh Jhunjhunwala, a former executive of the Anil Dhirubhai Ambani Group (ADAG), citing his declining health. The 70-year-old executive had been in custody since April as part of an Enforcement Directorate (ED) investigation into alleged money laundering. The probe centers on accusations of systemic bank loan fraud within certain financial entities of the Reliance Group, specifically Reliance Home Finance Ltd and Reliance Commercial Finance Ltd.
Justice Madhu Jain invoked the 'sick or infirm' provision under Section 45(1) of the Prevention of Money Laundering Act (PMLA) to authorize the release. The court determined that Jhunjhunwala’s medical condition, which includes spinal pathology, osteoporosis, and chronic cardiac issues, requires specialized care that cannot be fully provided within the constraints of a custodial setting. As a condition of the bail, the court ordered him to furnish a personal bond of ₹1 lakh, provide two sureties of the same amount, surrender his passport, and refrain from contacting any witnesses linked to the case.
The ongoing regulatory investigation focuses on allegations that the aforementioned entities utilized a network of shell companies to divert and siphon funds. Both Reliance Home Finance and Reliance Commercial Finance have previously faced significant distress, including undergoing insolvency resolution proceedings in the past few years due to defaults on debt obligations. These legal proceedings have been a focal point for creditors and stakeholders tracking the group’s financial history.
For investors and market participants, the case underscores the continued regulatory and legal scrutiny surrounding governance and past financial management practices within the group's entities. While this specific court order deals with the release of an individual, the broader investigation into the alleged siphoning of funds and corporate governance failures remains active. The primary monitorable for those tracking the situation will be the progress of the Enforcement Directorate’s investigation and any subsequent findings regarding the alleged financial irregularities, which could have further implications for the group's legal and financial standing.