Reliance Power CFO Arrested by ED in Money Laundering Case
The Enforcement Directorate (ED) has arrested Ashok Pal, the Chief Financial Officer (CFO) and Executive Director of Reliance Power Ltd, in connection with a money laundering investigation pertaining to a fake bank guarantee case. Pal was apprehended on Friday night, October 10, 2025, under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. He was produced before a special court on Saturday, and the ED has been granted two days of custody for further interrogation.
The arrest follows an investigation into a fraudulent bank guarantee of ₹68 crore (approximately $8.2 million USD) submitted to the Solar Energy Corporation of India (SECI) for a Battery Energy Storage System (BESS) tender. The ED alleges that Pal played a crucial role in the diversion of funds from Reliance Power, a publicly listed company, and the submission of forged financial documents.
According to sources within the ED, Pal was summoned for questioning at the agency's Delhi headquarters before being taken into custody. The ED's investigation suggests that Pal's actions are part of a broader criminal conspiracy involving forged instruments and fraudulent communication channels intended to defraud public institutions and misappropriate funds.
The ED's probe has also revealed the involvement of Biswal Tradelink Pvt. Ltd, whose director, Partha Sarathi Biswal, is already in judicial custody for allegedly assisting in the creation of the forged documents. In August 2025, the ED conducted searches at the premises of Biswal Tradelink and arrested Partha Sarathi Biswal.
Reliance Power has acknowledged the arrest and stated that Ashok Pal has resigned from his position as Executive Director and CFO with immediate effect to assist in the ongoing investigation. The company maintains that it and its subsidiaries acted in good faith and are victims of fraud, forgery, and a cheating conspiracy. Reliance Power also clarified that Anil Ambani has not been on the company's board for over three years and is not involved in the matter.
The ED's investigation has revealed that the alleged fake bank guarantee was purportedly issued by FirstRand Bank in Manila, Philippines. However, FirstRand Bank does not have a branch in Manila. The agency also found that Pal allegedly approved releases and facilitated paperwork via Telegram and WhatsApp, outside of normal company procedures.
The case originates from a First Information Report (FIR) filed by the Economic Offences Wing (EOW) of the Delhi Police in November 2024. The FIR alleges the issuance of fake bank guarantees in exchange for an 8% commission. The ED is also investigating allegations of illegal diversion of loans worth approximately ₹3,000 crore (approximately $360 million USD) disbursed by Yes Bank to Reliance Group companies between 2017 and 2019. The agency is examining whether there was any quid pro quo involved, including potential bribes paid to bank officials.
Ashok Pal had been with Reliance Power for nearly eight years and was appointed as CFO on January 29, 2023.
