Reliance Power shares slide after CFO arrested in bank guarantee fraud case 

Chief Financial Officer of Reliance Power, Ashok Kumar Pal, brought to Patiala House Court after 2 days of ED custody, in connection with the Reliance Energy fake Bank Guarantee case, in New Delhi on Monday | Photo Credit: ANI

Reliance Power shares declined 0.93 per cent to ₹45.79 on Tuesday morning, down from the previous close of ₹46.22, following the arrest of its Chief Financial Officer and Executive Director Ashok Kumar Pal by the Enforcement Directorate.

Pal was arrested on October 10, 2025, under Section 19 of the Prevention of Money Laundering Act in connection with an alleged fake bank guarantee case. The ED had registered an Enforcement Case Information Report (ECIR/STF/14/2025) on June 16, 2025, based on an FIR filed by the Economic Offences Wing of Delhi Police on November 11, 2024.

In his resignation letter dated October 13, 2025, Pal stepped down from his positions effective October 11, 2025, citing the ongoing investigation. While maintaining his innocence, he stated he was tendering his resignation “considering my arrest and pending investigation in the interim till my name is cleared.”

The case involves an alleged fake endorsement of a bank guarantee against Earnest Money Deposit issued by a foreign bank, which was arranged by a third party. Reliance Power had filed the original complaint on October 16, 2024, asserting that the company and its subsidiaries “acted bonafidely and are a victim of fraud, forgery and cheating conspiracy.”

The company clarified that former chairman Anil D. Ambani has not been on the board for over 3.5 years and is not connected to this matter. The stock has traded between ₹31.27 and ₹76.49 over the past 52 weeks.

Published on October 14, 2025