Reliance Power CFO Arrested; Company Claims It’s a “Victim of Fraud,” Distances Anil Ambani from Case

Mumbai: Reliance Power has issued a strong statement following the arrest of its Chief Financial Officer (CFO), Ashok Kumar Pal, by the Enforcement Directorate (ED), asserting that the company and its subsidiaries are “victims of fraud, forgery, and cheating conspiracy.” The company has also moved to distance industrialist Anil Ambani from the controversy, clarifying he has not been on the company’s board for over three and a half years and has no connection to the matter.

Ashok Kumar Pal, who also served as an Executive Director, was arrested on the night of October 10 under the Prevention of Money Laundering Act (PMLA) in connection with an alleged fake bank guarantee of ₹68.2 crore. A court on Saturday remanded him to two days of ED custody.

In a regulatory filing, Reliance Power stated, “We wish to clarify on the media reports that Anil D. Ambani is not on the Board of Reliance Power Limited for more than 3.5 years and is not concerned with this matter in any manner.” The company reiterated its stance that it “acted bonafidely” and is a victim in the case.

A Twist in the Tale: Arrested CFO Claims He Was the Original Complainant

In a surprising turn of events, Ashok Kumar Pal has resigned from his position following the arrest, maintaining his innocence. In a communication to the company’s board, Pal claimed that he was the original complainant in the First Information Report (FIR) that led to the current ED investigation.

“I was the original complainant in FIR… registered by EOW, New Delhi. On the basis of the said FIR, Enforcement Directorate had registered an ECIR… wherein I have been arrested,” Pal’s statement read. He added that he is tendering his resignation due to the pending investigation but maintains his innocence and is not involved in any wrongdoing.

The ED’s probe is linked to a bogus bank guarantee allegedly submitted to the Solar Energy Corporation of India (SECI) on behalf of a Reliance Power subsidiary.