New Delhi, June 18 (IANS) A Delhi court on Thursday sent former Reliance Group executive Satish Seth to 14 days’ judicial custody in connection with an ongoing money laundering investigation being conducted by the Enforcement Directorate (ED).

Seth, a close associate of industrialist Anil Ambani and former Group Managing Director of the Reliance Group as well as former Vice-Chairman of Reliance Infrastructure, was brought to Delhi from Mumbai on transit remand following his arrest in the case.

The Dwarka court sent Seth to judicial custody for 14 days after the federal anti-money laundering agency produced him before the court a day before the expiry of his ED custody. His custodial remand was scheduled to end on June 19.

The ED had arrested Seth and former Reliance Telecom Director Gautam Doshi in Mumbai under the provisions of the Prevention of Money Laundering Act (PMLA) as part of its probe into an alleged bank loan fraud case.

The money laundering investigation stems from a Central Bureau of Investigation (CBI) case relating to an alleged loan fraud of Rs 114.98 crore involving Reliance Telecom Ltd and the State Bank of India (SBI).

According to the CBI, Reliance Telecom Ltd, along with its then Directors Seth and Doshi, was booked on charges of criminal conspiracy and cheating in connection with the alleged fraud.

The Central agency has also invoked provisions of the Prevention of Corruption Act against unknown public servants and others.

The SBI, in its complaint, alleged that the accused entities and individuals caused a wrongful loss of Rs 114.98 crore to the bank. The lender was part of a consortium of 11 banks that had sanctioned a term loan facility of Rs 735 crore to Reliance Telecom Ltd. The ED is understood to have taken cognisance of the CBI FIR and is examining the roles of Seth and Doshi in the alleged diversion and misuse of loan funds.

Following registration of the case in March, the CBI had conducted searches at multiple locations in Mumbai, including the residences of Seth and Doshi and the registered office of Reliance Telecom Ltd, recovering documents linked to loan transactions and financial dealings.

The latest development comes amid multiple investigations into alleged financial irregularities involving companies linked to the Reliance Group. Earlier this month, the CBI arrested Amitabh Jhunjhunwala, former Group Managing Director of Reliance Communications (RCom), in connection with an alleged loan fraud case involving a loss of Rs 2,929.05 crore.

Meanwhile, a Reliance Group spokesperson had said that Seth, 70, and Doshi, 73, are no longer associated with the Group.

–IANS

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