Reliance Capital Ex-Vice Chairman Denied Bail in ED Case

For investors, the ruling extends legal overhang on the wider Reliance ADAG ecosystem and reinforces the risk that alleged governance failures can spill into financing, refinancing and asset-recovery questions across group-linked entities. The case also keeps attention on the conduct of former senior management at Reliance Capital, a holding company that sat over RHFL and RCFL.

Jhunjhunwala was arrested by the ED on April 15 along with former Reliance Capital CFO Amit Bapna. The agency alleges the two, along with others, diverted money through corporate loans to shell companies controlled by Reliance Anil Ambani Group entities, with about 90% of the loans allegedly disbursed in breach of prudential lending norms.

The court rejected the defence argument that Jhunjhunwala should be granted bail on medical grounds, saying he had received treatment in jail hospitals and at LNJP and AIIMS and had not shown that his condition could not be managed in custody. His lawyers had cited heart issues, hypertension, orthopedic problems and a degenerative musculoskeletal condition.

The order comes as the ED’s investigation continues, and as the court also flagged the risk that staff members who are witnesses could be influenced if he were released. That keeps pressure on the broader case, including related proceedings involving Reliance companies and former executives, and raises the prospect of further charges or custody extensions as the probe develops.