A Delhi court has rejected medical bail for former Reliance Capital vice-chairman Amitabh Jhunjhunwala in an alleged money-laundering case involving more than ₹11,000 crore, describing him as a "principal architect" of the alleged scheme.
The Court's Reasoning
Special Judge Vishal Pahuja of Rouse Avenue Courts rejected Jhunjhunwala's bail plea after finding that the medical treatment available to him in custody, including referrals to AIIMS and LNJP Hospital, was adequate for his current conditions. Jhunjhunwala had sought bail primarily on health grounds, with his lawyers telling the court he suffers from heart-related problems, hypertension, orthopaedic issues, degenerative musculoskeletal conditions, and a compression fracture causing lower-back pain. They argued his condition had deteriorated in jail and that he qualified as "sick" or "infirm" under the exception in Section 45 of the Prevention of Money Laundering Act.
The Enforcement Directorate opposed the plea, arguing Jhunjhunwala was already receiving regular treatment in jail and had been taken to LNJP Hospital and AIIMS for consultations. According to Hindustan Times, the court accepted this argument, holding that Jhunjhunwala hadn't demonstrated his conditions couldn't be managed within the existing prison and referral-hospital system. The judge also expressed concern that Jhunjhunwala could potentially influence witnesses if released, given that several company employees remain witnesses in the ongoing investigation.
What the ₹11,000 Crore Case Is Actually About
Jhunjhunwala was arrested by the ED on April 15, alongside former Reliance Capital CFO Amit Bapna. The investigation centres on the alleged diversion of public funds from Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL) through companies the ED describes as shell or paper entities.
According to the agency, both companies raised large sums from banks and financial institutions before lending much of it onward as corporate loans, more than ₹11,000 crore of which eventually became non-performing assets. The ED alleges this money was diverted through numerous shell or dummy companies allegedly controlled or managed by entities linked to the Reliance Anil Ambani Group, with separate reporting putting the "proceeds of crime" identified by the ED at over ₹11,600 crore. The agency has alleged that close to 90% of certain corporate loans were disbursed to shell companies despite their weak financial capacity and little to no genuine operating business.
Jhunjhunwala served as a director of Reliance Capital from 2003 to 2019, and as vice-chairman between 2006 and 2019. ED material cited in court describes him as a key decision-maker across areas including fundraising, monitoring cash flows, analysing operating plans, and disbursing loans at RHFL and RCFL. It's worth stressing these remain ED allegations and have not been finally established by any court.
What Shell Companies and Round-Tripping Actually Mean
A shell company is generally a legal entity with little meaningful business activity of its own, and shell companies aren't automatically illegal, they're regularly used for legitimate purposes like holding assets or structuring investments. The problem arises when such entities are allegedly used to obscure who actually controls money or where funds ultimately end up.
The ED claims corporate loans were routed through multiple paper companies before reaching other group-linked entities, and investigators have also alleged round-tripping in parts of the financial trail, where money moves through several entities or transactions before returning to a related party, making the movement resemble genuine, separate commercial activity when it isn't. The Indian Express reported that the ED alleged this structure was specifically designed to conceal the true nature of certain transactions, exactly the kind of activity a thorough financial investigation is built to unravel.
Why Bail Under PMLA Is Genuinely Harder to Get
Section 45 of the PMLA contains what's commonly known as the "twin conditions" for bail. Broadly, the court must be satisfied there are reasonable grounds to believe the accused isn't guilty, and is unlikely to commit an offence while on bail, a considerably higher bar than in many other criminal proceedings. The law does carry exceptions for certain categories, including people who are sick or infirm, which is the exception Jhunjhunwala relied on here.
This particular order is notable because the court appears to have held that suffering from multiple medical conditions isn't sufficient on its own, the accused must also show that proper treatment genuinely cannot be provided while in custody, a distinction that matters for how similar bail applications are likely to be assessed going forward.
What's Happening Alongside This Case
The broader investigation has continued in parallel. In June, the ED filed a prosecution complaint against Jhunjhunwala, Bapna, and dozens of other accused in the RHFL-RCFL case. The agency has also provisionally attached properties worth hundreds of crores as part of the wider Reliance-linked investigation, in March, it attached 31 properties worth ₹581.65 crore, and said cumulative attachments across related Reliance Anil Ambani Group cases had crossed ₹16,000 crore. Jhunjhunwala and the other accused remain entitled to contest the ED's allegations fully during trial.
FAQs
Q1. Why did the court deny Amitabh Jhunjhunwala's bail request?
The court found the medical treatment available to him in custody, including referrals to AIIMS and LNJP Hospital, was adequate, and held he hadn't shown his conditions couldn't be managed within the existing prison and hospital system.
Q2. What is the RHFL-RCFL case actually about?
The ED alleges more than ₹11,000 crore in public funds raised by Reliance Home Finance and Reliance Commercial Finance were diverted through shell companies linked to the Reliance Anil Ambani Group before becoming non-performing assets.
Q3. What role did Jhunjhunwala allegedly play?
ED material describes him as a key decision-maker in fundraising, cash-flow monitoring, and loan disbursal at RHFL and RCFL, while serving as director and later vice-chairman of Reliance Capital between 2003 and 2019.
Q4. Has Jhunjhunwala been convicted?
No. These remain ED allegations that have not been finally established in court; he and other accused retain the right to contest them fully during trial.