Reliance Power CFO Resigns After ED Arrest in Money Laundering Probe

Reliance Power Ltd on Saturday said its Executive Director and Chief Financial Officer (CFO) Ashok Kumar Pal has resigned from his post after being arrested by the Enforcement Directorate (ED) in connection with an ongoing money laundering investigation linked to an alleged fake bank guarantee case.

In a regulatory filing to the BSE and NSE, the Anil Ambani Group company said Pal was arrested by the ED on the night of October 10 under Section 19 of the Prevention of Money Laundering Act, 2002. He was produced before a special court on Saturday morning, which granted the ED two days of custody for further questioning.

Reliance Power said Pal has “demitted the office of Executive Director and CFO with immediate effect” to assist in the ongoing investigation. The company added that a formal letter of resignation will follow and that all requisite disclosures will be made in compliance with SEBI regulations.

Also Read: ED Arrests Reliance Power CFO Ashok Kumar Pal in Fake Bank Guarantee Case Linked to Anil Ambani’s Firm | Republic World

Company distances itself from the case

The case pertains to an alleged fake endorsement of a bank guarantee against an earnest money deposit (EMD) issued by a foreign bank. According to earlier company disclosures, the guarantee was arranged by a third party, against whom Reliance Power lodged a criminal complaint with the Economic Offences Wing (EOW) of Delhi Police in October 2024. An FIR in the case was subsequently registered on November 11, 2024.

“The company and its subsidiaries acted bona fide and are victims of fraud, forgery, and a cheating conspiracy,” the filing stated.

Amid media speculation, Reliance Power also clarified that Anil D. Ambani has not been a board member of the company for over three and a half years and “is not concerned with this matter in any manner.” The company said it will continue to take all legally advised steps in the matter.

Reliance Power’s recent challenges

Reliance Power, once among India’s most high-profile private sector power producers, has faced a prolonged period of financial stress. The company, part of the Anil Ambani-led Reliance Group, has been working to deleverage its balance sheet and resolve legacy liabilities arising from stalled projects and cost escalations.

In recent years, Reliance Power has focused on rationalizing debt and exploring strategic partnerships to revive its generation capacity across coal-based, gas-based, and renewable energy assets. The company’s subsidiaries have been engaged in restructuring exercises and asset monetization to strengthen liquidity.