ED Arrests Reliance Power CFO in Rs 68.2 Crore Fraud Case; Investigation Also Involves Anil Ambani
Mumbai, 11th October 2025: The Enforcement Directorate (ED) on October 10 arrested Ashok Kumar Pal, Executive Director and Chief Financial Officer (CFO) of Reliance Power Limited, in connection with alleged financial irregularities linked to Anil Ambani’s Reliance Group. Pal is accused of fraudulently obtaining bank guarantees and generating invoices worth ₹68.2 crore.
According to the ED, Pal disbursed loans totaling ₹12,524 crore from Reliance Home Finance and Reliance Commercial Finance, mostly to companies under the Anil Ambani Group. The agency alleges that Pal approved fraudulent documents and misappropriated funds.
The investigation has also implicated Anil Ambani. In August, the ED summoned him for questioning as part of the ongoing probe. Earlier, on July 24, the ED conducted raids at more than 35 locations and approximately 50 companies associated with the Reliance Group in Mumbai. Following this, the Central Bureau of Investigation (CBI) also raided Ambani’s residence on August 23.
On September 18, the CBI filed two separate chargesheets in the Yes Bank fraud case, targeting Ambani and others. The agency alleges that fraudulent transactions occurred between Ambani’s group companies and firms owned by the family of former Yes Bank CEO Rana Kapoor, resulting in a loss of ₹2,796 crore to the bank. The CBI stated that Rana Kapoor misused his position to divert funds to Ambani’s financially weak companies, Reliance Commercial Finance Limited (RCFL) and Reliance Home Finance Limited (RHFL), which in turn extended low-interest loans and investments to the Kapoor family in a quid pro quo arrangement.
The case was initially filed in 2022 by the Chief Vigilance Officer of Yes Bank. The chargesheets have been filed under sections of the Prevention of Corruption Act and the Indian Penal Code, covering fraud, criminal conspiracy, and misuse of public property. Apart from Anil Ambani and Rana Kapoor, other accused include Bindu Kapoor, Radha Kapoor, Roshni Kapoor, RCFL, RHFL, RAB Enterprises Private Limited, Imagine Estates Private Limited, Bliss House Private Limited, Imagine Habitat Private Limited, Imagine Residences Private Limited, and Morgan Credits Private Limited.
Key Highlights of the Investigation:
Why ED acted: The case involves approximately ₹3,000 crore in loans disbursed by Yes Bank to Reliance Group companies between 2017 and 2019, which were allegedly diverted to shell companies and other group entities. ED investigations indicate possible bribery of senior Yes Bank officials.
What ED uncovered: The agency described the scheme as “well-planned and well-orchestrated,” involving loans to companies with weak credentials, repeated use of the same directors and addresses across multiple entities, missing loan documentation, fund transfers to shell companies, and loan evergreening.
CBI’s role: The CBI filed FIRs in two cases related to loans extended by Yes Bank to Reliance Home Finance and Reliance Commercial Finance, naming Rana Kapoor and others. Additional information has been shared with the ED by regulatory bodies including the National Housing Bank, SEBI, the National Financial Reporting Authority, and Bank of Baroda.
The investigation into the alleged financial irregularities within the Reliance Group is ongoing, and further action is expected as the ED and CBI continue their probe.
