Reliance Power shares fell by 0.93% 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 (ED).
Pal was taken into custody on October 10, 2025, under Section 19 of the Prevention of Money Laundering Act, concerning an alleged fake bank guarantee case. The ED initiated an Enforcement Case Information Report (ECIR/STF/14/2025) on June 16, 2025, based on a First Information Report (FIR) filed by the Economic Offences Wing of Delhi Police on November 11, 2024.
In a resignation letter dated October 13, 2025, Pal announced he would step down from his positions effective October 11, citing the ongoing investigation. While asserting his innocence, he stated he was resigning “considering my arrest and pending investigation in the interim till my name is cleared.”
The case centers around an alleged fraudulent endorsement of a bank guarantee against an Earnest Money Deposit issued by a foreign bank, facilitated by a third party. Reliance Power originally filed a complaint on October 16, 2024, claiming that the company and its subsidiaries were “victims of fraud, forgery, and cheating conspiracy.”
The company has clarified that former chairman Anil D. Ambani has not served on the board for over 3.5 years and has no connection to the case. Over the past year, the stock’s trading range has fluctuated between ₹31.27 and ₹76.49.
Published on October 14, 2025.
