**Why Reliance Power’s CFO Has Been Arrested by Enforcement Directorate**
*By Dwaipayan Roy | October 11, 2025, 11:08 AM*
The Enforcement Directorate (ED) has arrested Ashok Pal, the Chief Financial Officer (CFO) of Reliance Power, in connection with a money laundering investigation. The arrest took place late on Friday night following questioning related to an alleged fake bank guarantee worth ₹68 crore. Pal is scheduled to be presented before a special court, where the ED will request his remand for custodial interrogation.
**Details of the Case**
According to the ED, Ashok Pal played a significant role in the financial operations of Reliance Power. The case centers around a bank guarantee amounting to ₹68.2 crore submitted to the Solar Energy Corporation of India Limited (SECI) by Reliance NU BESS Limited, a subsidiary of Reliance Power. This guarantee was later found to be fake.
The ED has alleged that Pal was instrumental in submitting this bogus bank guarantee with the intent to cheat, highlighting his key involvement in the company’s financial activities.
**Exposure of a Larger Racket**
The investigation by the ED has uncovered a racket involving the provision of fake bank guarantees to various business groups. Biswal Tradelink, an Odisha-based company, has been identified as the main player in this fraudulent scheme.
In August, the ED conducted searches on Biswal Tradelink and its promoters, which led to the arrest of its Managing Director, Partha Sarathi Biswal.
The Reliance Group has stated that Reliance Power was a victim of fraud in this matter, distancing itself from the alleged wrongdoing.
**Modus Operandi of the Scheme**
Further probing by the ED revealed that Biswal Tradelink used an email domain closely resembling that of the State Bank of India (SBI) to create an illusion of authenticity. Through this fake domain, forged communications were sent to SECI to support the bogus bank guarantees.
Additionally, the company facilitated fake bills to earn commissions and operated multiple undisclosed bank accounts to carry out suspicious transactions involving crores of rupees.
The ongoing investigation continues as authorities seek to unravel the full extent of the fraudulent operations.
https://www.newsbytesapp.com/news/business/ed-arrests-reliance-power-cfo-in-bank-guarantee-fraud-case/story
