In a major development, the Enforcement Directorate (ED) has arrested Ashok Pal, the Chief Financial Officer (CFO) of Reliance Power, a company belonging to industrialist Anil Ambani’s Reliance Group, in connection with a money laundering case. The case is linked to the issuance of a fake bank guarantee worth ₹68 crore, according to official sources.
Arrest and Legal Proceedings
Ashok Pal was taken into custody on Friday night under provisions of the Prevention of Money Laundering Act (PMLA) after detailed questioning by the ED. He is expected to be produced before a special court, where the agency will seek his custodial remand for further interrogation.
Background of the Case
The case revolves around a bank guarantee of ₹68.2 crore that was submitted to the Solar Energy Corporation of India Limited (SECI) on behalf of Reliance NU BESS Limited, a subsidiary of Reliance Power. Investigators later found this bank guarantee to be fake.
Reliance NU BESS Limited was earlier known as Maharashtra Energy Generation Limited. The ED identified the company allegedly responsible for issuing these fraudulent guarantees as Odisha-based Biswal Tradelink.
ED Investigation and Earlier Arrests
In August, the ED had conducted searches against Biswal Tradelink and its promoters, following which the company’s Managing Director, Partha Sarathi Biswal, was arrested. According to the ED, the firm was running a racket that issued fake bank guarantees for business groups in exchange for a commission of around 8% of the total amount.
CFO’s Alleged Role in the Fraud
According to sources, Ashok Pal played a crucial role in the alleged diversion of funds. He and a few other officials were authorized by the company’s board to approve and sign documents related to SECI’s Battery Energy Storage System (BESS) tender. They were also empowered to utilize Reliance Power’s financial credentials to participate in the bid.
The probe further revealed that the fake bank guarantee was purportedly issued by the FirstRand Bank in Manila, Philippines—a bank that has no branch in that country, exposing the fraudulent nature of the document.
Connection to Delhi Police FIR
This money laundering case stems from a First Information Report (FIR) filed by the Economic Offences Wing (EOW) of the Delhi Police in November 2024. The FIR alleged that certain entities were issuing fake bank guarantees against hefty commissions.
Reliance Group’s Response
Following the exposure of the fake guarantee, Reliance Group stated that Reliance Power was a victim of “fraud, forgery, and cheating conspiracy.” The company also filed a criminal complaint against Biswal Tradelink with the Delhi Police’s EOW in October 2024. Reliance Power further disclosed details of the incident to the stock exchanges on November 7, 2024, affirming its cooperation with authorities and trust in the legal process.
Fake Domain and Communication Manipulation
The ED’s investigation has uncovered that Biswal Tradelink operated a fake email domain — s-bi.co.in — designed to resemble the official domain of the State Bank of India (sbi.co.in). This deceptive tactic was reportedly used to send forged communications to SECI, creating a false impression of legitimacy.
Sources added that Pal approved releases and handled paperwork through online platforms such as Telegram and WhatsApp, deliberately bypassing Reliance Power’s standard SAP/vendor master approval system.
Biswal Tradelink: A Paper Entity
The investigation also found that Biswal Tradelink was essentially a paper company. Its registered office turned out to be a residential property belonging to a relative of its managing director, further proving the dubious nature of its operations.