The Enforcement Directorate (ED) today arrested Reliance Power Ltd.’s chief financial officer Ashok Kumar Pal on money laundering charges pertaining to a fraudulent Bank Guarantee case.

Pal is reportedly a close aide to Reliance Group chairman Anil Ambani and was taken into custody after hours of interrogation under the Prevention of Money Laundering Act (PMLA).

According to media reports, the case pertains to the fraudulent bank guarantee submitted to the Solar Energy Corporation of India (SECI) of around ₹68 crore for a Battery Energy Storage System tender by Reliance Power.

Pal is alleged to have used bogus bank guarantees that were issued by spoofed email domains resembling those of major Indian banks. Additionally, reports claim that ED has accused Pal of facilitating the paperwork fraudulently via Telegram and WhatsApp, surpassing the official procedures.

The arrest is part of the broader allegations concerning financial irregularities across various subsidiaries belonging to the Anil Ambani group.

In a parallel move during August, the Central Bureau of Investigation (CBI) launched raids on properties tied to Ambani as it pursued an inquiry into a suspected bank fraud that reportedly resulted in a ₹2,900 crore loss for the State Bank of India (SBI).

Promptly following the CBI's actions, the ED mounted its own operations. Recently, the ED carried out raids on six different locations associated with the Group’s subsidiary Reliance Infrastructure (RInfra) in Indore and Mumbai. These actions form part of an ongoing investigation into purported illicit remittances sent abroad and the diversion of loans, with the total amount in question exceeding ₹17,000 crore.

The ED made these allegations of violations under the Foreign Exchange Management Act (FEMA), further intensifying the legal scrutiny on group companies connected to Anil Ambani.

According to media reports, Pal will be presented in court after two days.