Reliance Power CFO Arrested in ₹68 Crore Fake Bank Guarantee Money Laundering Case
The Enforcement Directorate (ED) has taken into custody Ashok Kumar Pal, Chief Financial Officer (CFO) of Reliance Power, in connection with a high-stakes money laundering investigation involving a purported ₹68.2 crore fake bank guarantee. The arrest was made late at night under the provisions of the Prevention of Money Laundering Act (PMLA), following detailed questioning by investigators.
According to the ED, the fake bank guarantee was submitted on behalf of Reliance NU BESS, a subsidiary of Reliance Power, to the Solar Energy Corporation of India (SECI). The guarantee was supposedly issued from a FirstRand Bank branch in Manila, Philippines, but the ED claims no such branch exists, indicating a fabrication. The fraudulent instrument was allegedly orchestrated through a shell company named Biswal Tradelink Pvt Ltd. Investigators say that Mr. Pal played a central role in preparing and submitting the guarantee, as well as in fake invoicing that accompanied it.
Following his arrest, Pal was produced in a special PMLA court, where the ED is seeking his custodial remand to facilitate further interrogation and evidence gathering. The case has broader implications, as it is reportedly linked to a massive ₹17,000-crore loan fraud case involving the ADA Group, of which Reliance Power is a part. The investigation is expected to expand further into related entities, financial trails, and the roles of other executives.
As the probe unfolds, questions loom over due diligence, internal controls, and accountability in major corporate transactions—especially where public tenders, banking guarantees, and state agencies are involved.
