ED Detains Reliance Power CFO for Fraudulent Financial Practices

The Enforcement Directorate (ED) has taken into custody Ashok Kumar Pal, the Chief Financial Officer of Reliance Power Limited, over alleged involvement in fraudulent financial activities. The arrest is part of a broader investigation into a fake bank guarantee and forged invoices tied to fund diversion.

As the CFO of Reliance Power, Pal allegedly played a critical role in the misdirection of company funds and the submission of fraudulent financial documents. The focal point of the investigation is a fraudulent bank guarantee of over Rs 68 crore submitted to the Solar Energy Corporation of India for a Battery Energy Storage System tender.

Authorities disclosed that Pal, authorized by a board resolution, finalized and submitted fake documents for a SECI bid, conspiring to cheat the PSU. The ED's investigation uncovered that the fake guarantee was purportedly issued by "FirstRand Bank, Manila," a non-existent branch, facilitated by Biswal Tradelink Pvt. Ltd. Investigators have connected these actions to a broader conspiracy involving counterfeit instruments and fraudulent communications.