Ex-RCom official Gautam Doshi sent to five-day ED custody in Rs 40,000 crore money laundering probe
A Delhi court on Saturday sent former Reliance Communications (RCom) 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 Rs 40,000 crore.
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.
In its order, the court said, “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.”
The ED had sought 14 days’ custodial interrogation of Doshi under provisions of the Prevention of Money Laundering Act (PMLA), contending that his custody was required to unearth the “complete conspiracy” behind the alleged diversion and layering of loan funds.
After hearing arguments from both sides, the court remanded Doshi to ED custody till June 18.
According to the ED, the investigation has revealed a fund trail involving diversion of loan funds from Reliance ADA Group entities to foreign remittances, offshore companies and foreign bank accounts.
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 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.
It alleged that 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 further claimed that key information relating to financial operations was regularly escalated to Doshi and functioned under his supervision.
“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,” the court said.
Seeking his custody, the ED said Doshi needs to be confronted with seized emails, electronic records, financial documents and witness statements to identify the ultimate beneficiaries of the alleged proceeds of crime and trace domestic as well as overseas assets.
The defence opposed the ED’s remand plea, arguing that no justifiable grounds existed either for Doshi’s arrest or for granting custodial remand.
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 court, while allowing ED remand for five days, directed the agency to make necessary arrangements concerning the accused’s medical condition.
