ED Arrests Reliance Power CFO in Fake BG Case
The Enforcement Directorate (ED) on Friday arrested Ashok Kumar Pal, the Chief Financial Officer of Reliance Power, for his alleged role in a ₹68.2 crore fake bank guarantee scheme tied to a Solar Energy Corporation of India (SECI) tender.
Details of the Allegation
ED officials allege that Pal orchestrated the submission of a bogus bank guarantee to SECI via Reliance NU BESS, a subsidiary of Reliance Power. The guarantee was purportedly issued by a foreign bank branch that does not exist. Investigators say Pal was deeply involved in creating, approving, and concealing the forged documents.
Legal Process Underway
Pal was taken into custody late on Friday and is expected to be presented before a special PMLA court soon. The ED will request custodial interrogation for further investigation.
Background and Corporate Links
Pal also serves as an executive director at Reliance Power and has been with the company for several years. The case is part of a broader probe into alleged financial irregularities involving the Anil Ambani–led Reliance ADA Group, including potential loan frauds and diversion of funds.
Implications and Reactions
The arrest marks a significant development in the government’s intensified scrutiny of large corporate groups’ financial practices. Reliance Power is a listed company with over 75% public shareholding, adding investor interest to the case. Analysts say the episode may trigger further regulatory and judicial oversight of corporate guarantees and tendering practices.
