Punit Garg Bail: Delhi HC Finds PMLA Twin Conditions Met in RCOM Money Laundering Case
Punit Garg bail was granted by the Delhi High Court on October 15, 2026, in a money laundering case investigated by the Directorate of Enforcement (ED) under the PMLA. Justice Sanjeev Narula held that Garg, a former Reliance Communications (RCOM) executive, satisfied the twin conditions under Section 45. This is a bail-stage decision, not a finding on guilt, and the trial continues. The ED's allegations remain allegations.
The case behind the Punit Garg bail order
The case arises from a CBI FIR lodged in August 2025 against RCOM, Anil Ambani and others, alleging criminal conspiracy, cheating and diversion of loan funds, with an alleged loss of Rs 2,929.05 crore to State Bank of India. In the ED's PMLA complaint, it linked Rs 149.77 crore of proceeds of crime to Garg across three overseas transactions. It alleged he had effective control over foreign step-down entities and took part in handling funds from the sale of a yacht and a Manhattan apartment.
| Reading | Detail | Signal |
|---|---|---|
| Yacht "Tian" | Acquired 2008 for $18.548 million | Five years before 2013 loan period |
| Manhattan apartment | Acquired 2010 for $6.395 million | Three years before 2013 loan period |
| Alleged loan period | 2013 to 2017 | Court saw no established link |
| Education remittances | $77,046.43 alleged by ED | Garg cited approved employment benefit |
| Trial record | 77,384 pages, 56 witnesses | Weighed against long custody |
How the court applied Section 45
The first condition asks the court to see reasonable grounds for believing the accused is not guilty. The court held the ED had not established the link, required under Section 2(1)(u) of the PMLA, between the offshore assets and funds allegedly diverted. It rejected the argument that refinancing older debts with 2013-2017 loans automatically turned earlier assets into proceeds of crime. The court noted that Garg had no role in the 2008 and 2010 acquisitions, was not involved in securing or diverting the 2013-2017 credit facilities and became an Executive Director only in October 2017.
The court said dealing with property is money laundering only if the property is proven to be proceeds of crime. On the education payments, Garg produced correspondence showing top management had approved them as an employment benefit.
The second condition asks whether the applicant is unlikely to commit an offence on bail. The court noted that he is 61, left all RCOM positions in 2025 and has no prior convictions. Key documents and bank records are already with agencies.
Article 21 and bail conditions
The court also stressed personal liberty under Article 21, citing Supreme Court rulings including V. Senthil Balaji. It said a complex financial trial with little prospect of early conclusion cannot justify indefinite detention. The prosecution had expanded sharply after a supplementary complaint in August 2026.
Garg must furnish a bail bond with two sureties, surrender his passport, remain in India and avoid contact with prosecution witnesses. He may not issue instructions on transferring or investing the offshore assets without the Special Court's permission.
