The Dwarka Court, Delhi has remanded former Reliance Infrastructure Managing Director and Vice Chairman Sateesh Seth to the custody of the Enforcement Directorate (ED) for six days in connection with a money laundering probe arising out of alleged financial irregularities in NHAI road construction projects.
He was arrested by the ED in Mumbai on June 12, 2026, and produced before the Vacation Judge in Delhi at around 8:00 PM on June 13 after obtaining transit remand. The ED sought 13 days’ custodial remand, contending that sustained interrogation was necessary to ascertain the full quantum of the alleged proceeds of crime, trace the end utilisation of funds, identify beneficiaries of remittances made to UAE-based entities, and uncover the role of other alleged conspirators.
According to the ED, Reliance Infrastructure allegedly siphoned public funds received for the Jaipur-Reengus Toll Road and Trichy-Karur Toll Road projects through a network of shell entities by disguising overseas remittances as payments for the import of polished and unpolished diamonds. The agency alleged that Seth, as the Group Managing Director and later Vice Chairman, exercised overall control over key commercial and financial decisions and played a significant role in the structuring and routing of the transactions.
The counsel representing Sateesh Seth argued that his arrest violated the mandatory safeguards under Section 19(1) and 19(2) of the Prevention of Money Laundering Act (PMLA). It was submitted that Seth had cooperated with the investigation and appeared whenever summoned, making his arrest unnecessary. The defence further highlighted that the 70-year-old had suffered a brain haemorrhage after appearing before the ED in May 2026, and continued to require close medical supervision due to his precarious health condition.
After hearing both sides, the Court held that there had been sufficient compliance with Section 19 of the PMLA and that custodial interrogation was necessary to trace the money trail and identify the beneficiaries of the alleged proceeds of crime. The Court, however, granted only six days of ED custody until June 19, 2026, instead of the 13 days sought by the agency.
Taking note of Seth’s medical condition, the Court directed that he undergo a medical examination every six hours by a competent doctor during ED custody, with his blood pressure monitored every two hours, and ordered that he be immediately shifted to a hospital in case of any medical emergency. The court also permitted Seth to meet his lawyers and one of his sons for 30 minutes daily while directing that interrogation be conducted at a CCTV-equipped location in accordance with Supreme Court guidelines.