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Court grants 5 days custody of Gautam Doshi to ED in Reliance Communications money laundering case
The Rouse Avenue Court on Saturday remanded Gautam Bhailal Doshi in 5 days ED Custody till June 18. He has been arrested in the Reliance Communications (RCom) alleged money laundering case.
Doshi is a former director of Reliance Telecom. He was produced at the residence of the vacation judge in the morning at around 8 a.m.
Vacation Judge Gaurav Rao remanded Gautam Bhailal Doshi in 5 days' ED custody after hearing the counsel for ED and the accused. He functioned as one of the Group Managing Directors of the Reliance ADA Group, and was a Director of Reliance Telecom Limited After producing the accused before the judge, the ED moved an application seeking 14 days custody remand of the accused.
The court granted custody of Doshi 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.
"I deem it fit to grant 5 days custody of the accused to the ED. Accordingly, the accused is remanded to the custody of ED for 5 days and he now be June 18, 2026, at or before 04.00 p.m. before the Vacation Judge, Rouse Avenue District Courts, New Delhi," the Vacation Judge ordered on June 13.
It is alleged against Gautam Bhailal Doshi that he occupied a position of substantial authority and control within the Reliance ADA Group and was deeply associated with its financial, corporate and offshore operations.
The investigation has revealed that he functioned as one of the Group Managing Directors of the Reliance ADA Group, was a Director of Reliance Telecom Limited during the relevant period, was a member of its Audit Committee, 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 establishes his active involvement in the management, supervision and control of the financial framework through which funds were raised, routed and deployed across domestic and overseas entities.
As per the ED, the Primary allegations are that the credit facilities availed by RCOM, M/s Reliance Telecom Ltd and M/s Reliance Infratel Ltd, together the group is referred as Reliance Anil Dheerajlal Ambani Group (RAAG) from a consortium of banks, through multiple banking arrangements by misrepresentation and deception.
It is further alleged 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 also alleged that RAAG undertook credit facilities from non-consortium banks during the same period, which comprises a set of interconnected transactions, as the credit facilities taken from consortium banks have been used for payments of non-consortium credit facilities as well.
It is alleged that the total outstanding amounts from the consortium banks as well as the non-consortium banks, which constitute proceeds of crime, are approximately ₹40,000 crore. The investigation so far has established a fund trail showing diversion of loan funds from RAAG to foreign remittances, foreign banks and offshore companies. The funds so availed from certain banks were not utilised for the intended purpose but were invested in mutual funds and transferred to group companies. These are detailed in the application seeking remand.
The court noted in the order 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.
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