Reliance Power CFO arrested in money laundering case linked to Anil Ambani Group

The Enforcement Directorate on Friday night arrested Reliance Power’s CFO, Ashok Kumar Pal, a top aide of Anil Ambani, in connection with a money laundering probe linked to the alleged Rs 17,000-crore ADA Group loan fraud.

Pal, who is the CEO and CFO of Reliance Power Ltd, has been detained from the ED office in Delhi under the Prevention of Money Laundering Act (PMLA). He is expected to appear before a Delhi court at 9:30 am on Saturday.

According to the CEO, Pal played a “central role” in organizing a fraudulent bank guarantee worth over Rs 68 crore, which was given to the Solar Energy Corporation of India (SECI). The guarantee was part of a broader racket involving fake invoices, shell companies and fake email domains, all aimed at presenting the counterfeit financial instruments as legitimate.

Investigators allege that Pal facilitated the appointment of Biswal Tradelink Pvt Ltd – a company with no reliable background – to issue the fake guarantee. The executive management claims that this was part of a scheme to divert public funds from a listed company, in which the public owns more than 75% of its shares.

Pal’s arrest is a major development in the larger investigation into the Anil Dhirubhai Ambani (ADA) group, which is being investigated for widespread financial irregularities. In August, the Enforcement Directorate raided 35 locations in Mumbai, including 50 companies and 25 individuals linked to the ADA group.

In the same month, Anil Ambani was summoned by the ED for questioning in the case. The investigation stems from allegations that Yes Bank, under then CEO Rana Kapoor, funneled large loans to stressed ADA group companies — loans that are now under scrutiny for fraud.

In parallel with the ED probe, the Central Bureau of Investigation (CBI) filed chargesheets in two corruption cases involving Kapoor and Ambani, accusing the duo of conspiring to divert public funds to financially unstable ADA entities.