New Delhi (Rajeev Sharma): The Enforcement Directorate (ED) has arrested Ashok Pal, Chief Financial Officer of Reliance Power, in connection with an ongoing investigation into a suspected money laundering case involving a bogus bank guarantee worth Rs 68.2 crore.
The arrest took place on Friday night following a detailed questioning session. ED officials confirmed that Pal was taken into custody under provisions of the Prevention of Money Laundering Act (PMLA). He is expected to be produced before a special court on Saturday, where the agency will request his remand for further interrogation.
The case concerns a bank guarantee allegedly submitted to the Solar Energy Corporation of India Limited (SECI) by Reliance NU BESS Limited — a subsidiary of Reliance Power — which was later discovered to be forged.
Investigators have traced the fraudulent guarantee to an Odisha-based company, Biswal Tradelink, which is suspected of running a broader operation providing counterfeit financial instruments to various business entities in exchange for commissions. The ED had previously conducted raids on the firm and arrested its managing director, Partha Sarathi Biswal, in August this year.
As part of their scheme, Biswal Tradelink reportedly used an email domain — s-bi.co.in — designed to mimic the official State Bank of India (sbi.co.in) in order to lend credibility to the fake guarantee. Forged emails and documents were allegedly sent to SECI to pass off the guarantee as authentic.
Preliminary findings also suggest the company issued fabricated invoices for commissions and moved funds through multiple undisclosed bank accounts. Financial transactions involving large sums have been flagged as suspicious. Furthermore, the firm’s registered office turned out to be a residential property with no trace of company documentation, according to investigators.
The ED’s case is built on a First Information Report (FIR) filed by the Delhi Police’s Economic Offences Wing (EOW) in November 2024. The FIR alleged that Biswal Tradelink was involved in providing fake guarantees for a fee of approximately 8%.
Responding to the situation, Reliance Power previously stated that it had fallen prey to a larger fraud and had taken legal action against the involved parties. The group said it had filed a complaint with the Delhi Police in October 2024 and had made the necessary disclosures to regulatory authorities in November that year.
The investigation remains active, with ED officials continuing to examine financial records, digital evidence, and potential links between the suspects and other business entities. Further developments in the case are expected in the coming days.
