NEW DELHI (India CSR): The Enforcement Directorate (ED) has arrested Ashok Pal, Chief Financial Officer (CFO) of Reliance Power Limited, a company led by industrialist Anil Ambani, in connection with a Rs 68.2 crore fake bank guarantee case under the Prevention of Money Laundering Act (PMLA), official sources said on Saturday.
According to ED officials, Pal was taken into custody on Friday night following detailed questioning over his alleged involvement in a forged bank guarantee submitted to the Solar Energy Corporation of India (SECI) by a Reliance Power subsidiary. He is expected to be produced before a special PMLA court in New Delhi, where the agency will seek his custodial remand for interrogation.
Case Linked to Fake Bank Guarantee for SECI Project
The case stems from a bank guarantee worth Rs 68.2 crore, allegedly issued to SECI by Reliance NU BESS Limited, a wholly owned subsidiary of Reliance Power. The guarantee, purportedly from the FirstRand Bank, was later found to be fake, the agency said.
ED sources revealed that the bank, which was claimed to have issued the guarantee from its Manila branch in the Philippines, has no such branch, confirming that the document was fabricated.
Reliance NU BESS Limited, previously known as Maharashtra Energy Generation Limited, had submitted the guarantee as part of a Battery Energy Storage System (BESS) tender floated by SECI.
ED: CFO Played Crucial Role in Approvals and Documentation
The probe has found that Ashok Pal played a “crucial role” in approving, finalising, and signing all bid-related documents for the SECI project. He was among the senior executives empowered by the Reliance Power board to handle all financial and administrative aspects of the tender, the sources said.
According to the ED, Pal facilitated the submission of forged documents and approved key fund transfers connected to the transaction. Investigators claim that many communications and approvals were conducted through unofficial online platforms such as Telegram and WhatsApp, bypassing standard corporate procedures and workflows like SAP/vendor master verification.
Biswal Tradelink Identified as Key Player in the Fraud
The ED’s investigation has identified Odisha-based Biswal Tradelink Private Limited as the company responsible for creating and supplying fake bank guarantees for business entities in exchange for a commission.
The Managing Director of Biswal Tradelink, Partha Sarathi Biswal, was arrested earlier in August 2025, after ED officials conducted raids at multiple locations, including corporate offices and residential premises.
Investigators said Biswal Tradelink created a fraudulent email domain (s-bi.co.in) that closely resembled the State Bank of India’s (sbi.co.in) to lend credibility to its communications. The fake domain was used to send forged documents and confirmation messages to SECI, misleading officials into believing the guarantee was genuine.
ED officials also discovered that Biswal Tradelink’s registered office was not a functioning business premise but a residential property belonging to a relative of Biswal, confirming the company’s status as a “paper entity.”
Reliance Group Says It Was Victim of Fraud
Following the registration of a case by Delhi Police’s Economic Offences Wing (EOW) in November 2024, the Reliance Group issued a statement asserting that Reliance Power was itself a victim of “fraud, forgery, and cheating conspiracy.”
A Reliance Group spokesperson said, “Reliance Power had filed a criminal complaint with the EOW against the third-party company in October 2024. The matter is under investigation, and we have made full disclosures to the stock exchanges.”
The group maintains that the forged guarantee was obtained through deceit by external entities and that the company is fully cooperating with law enforcement agencies.
ED’s Case Based on Delhi Police FIR
The ED’s money laundering investigation is based on a November 2024 FIR filed by the EOW, which alleged that Biswal Tradelink and its associates were issuing fake bank guarantees in exchange for an 8% commission.
The ED subsequently invoked the PMLA, alleging that the crime generated proceeds of crime and involved layering and concealment of illicit funds through multiple accounts.
In its preliminary findings, the agency said the forged guarantees were used to inflate corporate credentials and secure contracts in violation of financial and procurement regulations.
Further Investigation Underway
Officials indicated that the agency will now focus on tracing fund flows, identifying beneficiaries, and verifying possible collusion between internal executives and external entities. The ED has already recovered digital evidence, communication records, and financial transaction trails during raids conducted in August.
The investigation is expected to expand to foreign jurisdictions to verify the authenticity of international financial institutions allegedly referenced in the fake guarantees.
“Further questioning of senior officials and forensic analysis of electronic communication is ongoing. More arrests cannot be ruled out,” a senior ED officer said.
Wider Crackdown on Corporate Financial Fraud
The ED’s action against Reliance Power’s CFO is part of a broader crackdown on corporate financial crimes, particularly those involving fake guarantees, shell companies, and illicit fund movements.
Over the past year, the agency has registered multiple cases against corporate executives and intermediaries accused of manipulating banking instruments and misusing public funds. Officials said the latest arrest underscores the ED’s resolve to ensure accountability and transparency in financial dealings involving both public and private sector firms.
Background on Reliance Power
Reliance Power, part of the Reliance ADA Group, operates several power generation projects across India and has subsidiaries engaged in renewable and conventional energy sectors.
The company, listed on Indian stock exchanges, has faced regulatory scrutiny in the past for delays in project implementation and financial stress within the broader Anil Ambani-led group.
The latest developments mark a significant escalation in the ongoing investigation into alleged financial irregularities involving the company’s subsidiaries.
(India CSR)
