Reliance Power's CFO Arrest Shakes Company Amid Fraud Allegations

Reliance Power faced significant upheaval on Saturday as its Executive Director and CFO, Ashok Kumar Pal, stepped down following his arrest by the Enforcement Directorate. The arrest was made under the Prevention of Money Laundering Act, 2002. Pal, accused of complicity in a fraudulent bank guarantee scheme, has been remanded to two days in ED custody.

The charges stem from allegations regarding a bank guarantee of Rs 68.2 crore submitted on behalf of Reliance NU BESS Limited, a subsidiary of the publicly-listed Reliance Power. This guarantee was allegedly counterfeit, a claim brought to light in a complaint by Delhi Police's Economic Offences Wing, who registered a case in November 2024.

While Reliance Power has clarified that Anil D. Ambani, a prominent figure often associated with the company, has not been on the Board for over three years and is unrelated to the ongoing investigation, the company is adamant in its stance as a victim of fraud. They continue to cooperate with the authorities and have lodged a complaint against the accused company, identified as Odisha-based Biswal Tradelink.

(With inputs from agencies.)