New Delhi: On Friday, October 10, 2025, the Enforcement Directorate (ED) arrested Ashok Kumar Pal, the Chief Financial Officer (CFO) of Reliance Power, a major energy company under Anil Ambani’s Reliance Group, in a high-profile financial fraud case.
The arrest took place in Delhi after hours of questioning, and Pal is set to appear in court on Saturday, October 11, where the ED will seek his custodial interrogation.
The case centers on a fake bank guarantee worth ₹68 crore (approximately $8 million) used to deceive the Solar Energy Corporation of India (SECI), a government body managing renewable energy projects.
The scam came to light following a police complaint in November 2024, which accused Reliance Power’s subsidiary, Reliance NU BESS Limited, of submitting a forged bank guarantee to win a project bid with SECI. The ED alleges that Pal played a central role in the fraud, collaborating with a questionable firm, Biswal Tradelink, to create the fake guarantee.
He is also accused of approving fraudulent invoices to siphon off funds and using apps like WhatsApp and Telegram for secretive communications, bypassing official company channels. This misconduct is part of a broader investigation into financial irregularities within the Anil Ambani-led Reliance Group, including a suspected ₹17,000 crore loan fraud involving banks like Yes Bank.
The ED’s probe has intensified in recent months. In August 2025, the agency raided Biswal Tradelink and arrested its owner, Partha Sarathi Biswal, in connection with the same case.
The investigation also examines loans worth ₹3,000 crore extended to Reliance Group companies between 2017 and 2019, with suspicions that funds were diverted to other entities like Reliance Infrastructure. The ED has questioned several former Reliance executives and is now seeking detailed loan records from banks, including the State Bank of India, which previously flagged some Reliance accounts as fraudulent.
Reliance Power, a publicly listed company with over 75% of its shares held by public investors, faces significant reputational and financial risks due to this scandal.
The case not only threatens the company’s credibility but also raises concerns for its investors and stakeholders. The ED’s ongoing investigation could uncover further irregularities, potentially leading to more arrests and stricter scrutiny of the Reliance Group’s financial dealings.
As the court hearing looms, the focus is on whether Pal’s custody will yield new evidence in this complex web of alleged fraud. The case underscores the ED’s aggressive stance on tackling financial crimes and highlights the challenges facing Anil Ambani’s business empire amid mounting legal and financial troubles.
