CFO of Reliance Power Arrested in Fake Bank Guarantee Case

The Enforcement Directorate (ED) has apprehended Ashok Pal, the Chief Financial Officer (CFO) of Reliance Power, amid allegations of issuing a fraudulent bank guarantee amounting to Rs 68 crore. Official sources disclosed Pal's arrest, which occurred on Friday night under the jurisdiction of the Prevention of Money Laundering Act (PMLA).

The case emanates from a dubious bank guarantee submitted to the Solar Energy Corporation of India Limited (SECI), representing Reliance NU BESS Limited, a subsidiary of Reliance Power. The guarantee, purportedly issued by FirstRand Bank in Manila, Philippines, was deemed counterfeit, as the bank lacks a branch in the region.

ED sources accuse Pal of playing a vital role in the financial misconduct, enabling the diversion of funds. Investigations revealed that Biswal Tradelink, identified as a key accomplice, used misleading domain emails to mislead entities, including SECI, thereby facilitating the execution of the fraudulent activities.

(With inputs from agencies.)