Enforcement Directorate Arrests Reliance Power CFO Ashok Kumar Pal in Money Laundering Investigation
The Enforcement Directorate (ED) has apprehended Ashok Kumar Pal, a top executive at Reliance Power and a close associate of Anil Ambani, in connection with a money laundering investigation. Pal, who serves as the Chief Financial Officer (CFO) and Executive Director of Reliance Power Limited, was arrested in Delhi on Saturday.
The arrest follows an extensive investigation into a case involving alleged fake bank guarantees. Sources indicate that Pal was taken into custody on Friday night after several hours of questioning. He is expected to be produced before a special judge, where the ED will seek his custody for further interrogation.
The ED's investigation is reportedly linked to suspected loan frauds involving Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL). The agency initiated its probe under the Prevention of Money Laundering Act (PMLA) based on two First Information Reports (FIRs) filed by the Central Bureau of Investigation (CBI).
According to the ED, RHFL and RCFL extended loans amounting to ₹12,524 crore, with a significant portion disbursed to companies connected to the Reliance Anil Ambani Group. Of these loans, ₹6,931 crore have been declared as non-performing assets (NPAs). Preliminary findings suggest that funds were allegedly routed back to other companies within the Reliance Group, raising concerns about "circular lending".
The ED has also implicated Yes Bank's Rana Kapoor, alleging that he played a crucial role in sanctioning these loans. The agency claims that firms linked to Kapoor's family also received credit facilities.
An audit conducted by Grant Thornton reportedly flagged significant instances of fund diversion and violations of lending policies. So far, the ED has carried out searches across 60 companies and 22 individuals as part of its ongoing investigation.
Pal's arrest marks a significant development in the probe against Anil Ambani's firm. The investigation is ongoing, and further details are awaited.
