ED Seizes Reliance Power Assets Worth Rs 2,032 Crore in FEMA Case Linked to Overseas Investments

October 14, 2026

New Delhi: The Enforcement Directorate (ED) has attached assets worth Rs 2,032.81 crore belonging to Reliance Power Ltd (RPL), led by Anil Ambani, in India under the Foreign Exchange Management Act (FEMA), alleging violations involving foreign exchange held overseas.

According to an official statement issued by the agency on Wednesday, the assets include bank balances of Reliance Power and its shareholding in Sasan Power Limited. The value of the seized assets is equivalent to the foreign exchange allegedly retained outside India in violation of Section 4 of FEMA.

The investigation centres on overseas investments and advances that Reliance Power reportedly wrote off in its accounts. The ED initiated the probe after receiving information from the Securities and Exchange Board of India (SEBI) regarding write-offs totalling Rs 2,101.46 crore involving companies registered in the British Virgin Islands (BVI) and the Cayman Islands.

ED Probe Traces $300 Million Bond Proceeds to Overseas Entities

The agency conducted search operations under FEMA from March 6 to 8 this year. During the searches, investigators seized documents and other evidence and recorded statements from several individuals.

The investigation found that Reliance Natural Resources Ltd, which subsequently merged with Reliance Power, had raised $300 million through Foreign Currency Convertible Bonds (FCCBs) in 2006.

Of this amount, $275 million was transferred to its wholly owned Singapore subsidiary, Reliance Natural Resources (Singapore) Pte Ltd (RNRL-S).

The Singapore-based subsidiary subsequently deposited the funds with Deutsche Bank (Suisse) SA in Geneva. These deposits were then used as collateral for loans extended to companies incorporated in the British Virgin Islands, the ED said.

ED Alleges BVI Companies Were Controlled From India

According to the agency, its investigation indicated that the BVI-registered entities were controlled and managed from India by the Reliance Anil Ambani Group through intermediaries who allegedly acted on the group’s instructions.

The ED further alleged that the loan proceeds were used for various purposes, including the temporary transfer of funds back to India through foreign entities based in Mauritius. The funds were allegedly used for the group’s benefit, while a portion remained parked outside the country.

Investigators also found that the BVI entities failed to repay the loans extended by Deutsche Bank.

Agency Alleges Backdated Documents Were Used to Cover Transactions

The ED alleged that documents were subsequently fabricated to portray the transactions as legitimate business advances. These documents purportedly showed that RNRL-S and Indonesian subsidiaries of Reliance Power had advanced funds to the BVI entities for genuine commercial purposes.

However, according to the agency, the investigation revealed that the documents had been prepared retrospectively and backdated to give the transactions the appearance of legitimate business dealings.

The ED’s action involves assets in India equivalent in value to the foreign exchange allegedly held abroad in contravention of FEMA provisions.

The agency said the investigation is continuing.