ED Arrests Reliance Power CFO in ₹68 Crore Fake Bank Guarantee Case

The Enforcement Directorate (ED) has arrested Ashok Pal, the Chief Financial Officer of Reliance Power, a company owned by industrialist Anil Ambani, in connection with a money laundering probe involving a fraudulent ₹68 crore bank guarantee, according to reports.

Pal was detained late Friday night under the Prevention of Money Laundering Act (PMLA) following extensive questioning by the agency. He is scheduled to appear before a special court on Saturday, where the ED will seek his custodial remand for further interrogation.

The case centres on a ₹68.2 crore bank guarantee submitted to the Solar Energy Corporation of India Limited (SECI) by Reliance NU BESS Limited, a subsidiary of Reliance Power, previously known as Maharashtra Energy Generation Limited. The ED investigation revealed that the guarantee was fabricated, allegedly part of a scheme orchestrated by Odisha-based Biswal Tradelink, a company accused of running a racket to issue fake bank guarantees.

In August, the ED conducted raids at the premises of Biswal Tradelink and its promoters, leading to the arrest of the company’s Managing Director, Partha Sarathi Biswal. The agency’s probe has since uncovered evidence suggesting a broader network involved in the issuance of fraudulent financial instruments, prompting intensified scrutiny of Reliance Power’s financial operations.

The arrest of Pal marks a significant development in the ongoing investigation, which is focused on unravelling the financial irregularities and tracing the flow of illicit funds. The ED is expected to probe Pal’s role in the submission of the fake guarantee and any potential links to the broader money laundering scheme. Authorities have not yet disclosed additional details regarding other individuals or entities involved, but the investigation remains active as the agency seeks to establish the full scope of the alleged fraud.