Shares of Reliance Power Ltd fell 7.25% on Monday, October 13, to Rs 45.06, after the Enforcement Directorate (ED) arrested Ashok Kumar Pal, the company’s Chief Financial Officer, in connection with a Rs 68 crore fake bank guarantee case.
According to reports by PTI, Pal was taken into custody on Friday night under the Prevention of Money Laundering Act (PMLA) and will be produced before a special court for custodial interrogation. The case is linked to a fake bank guarantee submitted to the Solar Energy Corporation of India (SECI) on behalf of Reliance NU BESS Ltd, a subsidiary of Reliance Power.
Reliance Power said in a statement that it and its subsidiaries were victims of fraud and forgery, and that Pal has stepped down to assist in the ongoing investigation. The company clarified that Anil D. Ambani has not been on its board for over three years and is not connected to the case.
The ED’s investigation traces back to a November 2024 FIR filed by Delhi Police’s Economic Offences Wing (EOW), which alleged that an Odisha-based company, Biswal Tradelink, issued fake bank guarantees for an 8% commission. In August, the ED arrested Partha Sarathi Biswal, the Managing Director of the accused company, as part of the ongoing probe.
Reliance Power reiterated that it has filed its own criminal complaint against the accused firm and will continue cooperating with authorities.
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