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

The Enforcement Directorate (ED) has taken into custody Ashok Kumar Pal, Chief Financial Officer of Reliance Power, in a money laundering case related to a fraudulent bank guarantee worth ₹68 crore, as per the PTI report. 

The arrest was made on Friday evening under the Prevention of Money Laundering Act (PMLA) after detailed questioning by the agency. Pal will be presented before a special court, where the ED is expected to seek his custody for further interrogation.

Case Background: Fake Bank Guarantee to SECI

As per the news reports, the investigation pertains to a bank guarantee of ₹68.2 crore issued to the Solar Energy Corporation of India Limited (SECI) on behalf of Reliance NU BESS Limited, a wholly owned subsidiary of Reliance Power. The guarantee was later found to be fraudulent, allegedly issued by Odisha-based Biswal Tradelink, which was running a racket to provide fake guarantees in exchange for hefty commissions.

Reliance NU BESS, formerly known as Maharashtra Energy Generation Limited, had submitted the forged document as part of its business dealings with SECI. According to investigators, the accused company created a fake domain resembling the State Bank of India’s official website to make the bank guarantee appear genuine.

Reliance Power’s Response

Reliance Power said in a statement that both the company and its subsidiaries were victims of fraud and forgery, clarifying that Ashok Kumar Pal has stepped down from his role as Executive Director and CFO to assist with the investigation. The company also stated that Anil D. Ambani has not been part of its board for over 3 years and is not involved in the case.

It's reported that the company had itself filed a criminal complaint with Delhi Police’s Economic Offences Wing (EOW) in October 2024 after discovering the fraud, which subsequently led to an FIR in November 2024.

Read More: Anil Ambani Denies Fraud Loan Allegations, Blames Bank of India for Unfair Treatment!

Reliance Power Share Price Performance 

As of October 13, 2025, at 9:26 AM, Reliance Power share price is trading at ₹44.99 per share, reflecting a decline of 7.43% from the previous closing price.

Conclusion

The arrest of Reliance Power’s CFO marks a critical step in the ongoing probe into one of the more elaborate fake bank guarantee scams uncovered in recent years. The ED’s investigation continues to track the money trail and identify others potentially involved in the racket. Meanwhile, Reliance Power maintains that it is cooperating fully with authorities as a victim of financial fraud, not a participant.

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