Mumbai The Enforcement Directorate (ED) has arrested Ashok Kumar Pal, the Chief Financial Officer (CFO) of Reliance Power. This arrest was made as part of an investigation into a money laundering case related to fake bank guarantees and fake invoicing.

The Enforcement Directorate (ED) has arrested Ashok Kumar Pal, Executive Director and Chief Financial Officer (CFO) of Reliance Power Limited. Pal is accused of involvement in fake bank guarantees and invoicing worth ₹68.2 crore related to Anil Ambani’s Reliance Group (ADA).

Pal was arrested by the ED late Friday night after questioning. Today, he was presented before a special court in Delhi where the ED sought custody, which was granted for two days. Pal will be presented again in court on Monday.

According to the ED, Pal distributed loans worth ₹12,524 crore from Reliance Home Finance and Reliance Commercial Finance, most of which were given to companies of the Anil Ambani Group. Pal is accused of approving fake documents and improperly transferring money.

ED questioned Anil Ambani in August

In August, the ED had also summoned Ambani for questioning in connection with this investigation. Following the ED’s investigation, raids were conducted at 35 locations in Mumbai in August, involving 50 companies and approximately 25 people.

CBI filed chargesheet in September

Previously, in a fraud case involving Yes Bank, the CBI had filed two separate chargesheets on September 18 against Anil Ambani and others. They are accused of alleged fake transactions between Ambani’s group companies and companies owned by the family of former Yes Bank CEO Rana Kapoor, causing the bank a loss of ₹2,796 crore.

The CBI stated that Rana Kapoor misused his position to divert Yes Bank funds to Ambani’s financially weak companies – RCFL and RHFL. In return, Ambani’s companies provided loans and investments at lower interest rates to Kapoor family companies. This was a quid pro quo transaction.

Mumbai

Mumbai is a major port city and the financial capital of India, located on the west coast. Originally a collection of seven islands inhabited by fishing communities, it was developed by the British East India Company in the 17th century and grew into a global trade hub. Today, it is a bustling metropolis known for its Bollywood film industry, colonial-era architecture like the Chhatrapati Shivaji Terminus, and the iconic Gateway of India.

Enforcement Directorate

The Enforcement Directorate (ED) is not a place or cultural site, but a specialized financial investigation agency of the Indian government. It was established in 1956 and is responsible for enforcing key economic laws, primarily focusing on combating money laundering and foreign exchange violations. Its work involves investigating financial crimes and attaching the assets of offenders.

Reliance Power

Reliance Power is an Indian private-sector power generation company, part of the Reliance Anil Dhirubhai Ambani Group, founded in 1995. It develops, constructs, and operates power projects across India, playing a significant role in the country’s energy infrastructure. While not a historical cultural site, it is a major modern entity in India’s industrial and economic history.

Anil Ambani’s Reliance Group

The Reliance Group is a major Indian conglomerate founded by Dhirubhai Ambani in 1966, which grew from a textiles company into a vast empire spanning energy, infrastructure, and telecommunications. Following Dhirubhai’s death in 2002, the group was divided between his sons, with Anil Ambani taking control of companies such as Reliance Communications, Reliance Power, and Reliance Infrastructure. In recent years, the Anil Dhirubhai Ambani Group (ADAG) has faced significant financial challenges and a substantial reduction in its business footprint.

Delhi

Delhi is India’s capital territory and a historic city that has served as the capital for several empires, including the Delhi Sultanate and the Mughals. It is renowned for its many historic landmarks, such as the Red Fort and Qutub Minar, which reflect its long and layered history. Today, it is a bustling modern metropolis that seamlessly blends its ancient heritage with contemporary urban life.

Reliance Home Finance

“Reliance Home Finance” is not a cultural site or a historical place, but a financial services company. It was a part of the Reliance Anil Dhirubhai Ambani Group, primarily involved in providing home loans and related financial products in India. The company faced significant financial difficulties and was eventually taken over by another entity as part of a resolution process under India’s bankruptcy code.

Reliance Commercial Finance

“Reliance Commercial Finance” does not refer to a public place or cultural site, but is a financial services company. It was part of the Reliance Anil Dhirubhai Ambani Group, providing loans and financing solutions to businesses and individuals. Its history is tied to the corporate activities and restructuring within the larger Reliance Group conglomerate.

Yes Bank

“YES Bank” is not a cultural site or historical place, but a major private sector bank in India. It was founded in 2004 by Rana Kapoor and Ashok Kapur and grew rapidly to become one of India’s largest banks. However, it faced a severe crisis in 2020 due to bad loans, leading to a rescue plan orchestrated by the Reserve Bank of India and a consortium of other banks.