The Enforcement Directorate (ED) has intensified its investigation into an alleged money laundering case involving Reliance Power , making its third arrest in connection with a fake bank guarantee worth Rs 68 crore. Amar Nath Dutta was apprehended by the ED, joining two previously arrested individuals in this ongoing probe.

Case Overview

The case centers around a fraudulent bank guarantee submitted to the Solar Energy Corporation of India by Reliance NU BESS Limited, a subsidiary of Reliance Power. The ED's investigation has uncovered a complex web of financial misconduct, leading to multiple arrests.

Key Developments

Latest Arrest

• Amar Nath Dutta has been taken into custody by the Enforcement Directorate.

Previous Arrests

• Ashok Kumar Pal, former CFO of Reliance Power
• Partha Sarathi Biswal of Biswal Tradelink

Fraudulent Scheme

• The investigation revealed that Biswal Tradelink operated a racket providing fake bank guarantees for an 8% commission.

Modus Operandi

The fraudsters employed sophisticated tactics to create an illusion of legitimacy:

• Used a fake email domain similar to State Bank of India's
• Claimed the bank guarantee was from FirstRand Bank in Manila
• FirstRand Bank has no branch in the Philippines

Reliance Power's Stance

Reliance Power has stated that it is a victim of fraud and has filed a criminal complaint with the Delhi Police. The company clarified that Anil Ambani has not been on Reliance Power's board for over 3.5 years.

This case highlights the ongoing challenges in financial regulation and the sophisticated nature of financial crimes in the corporate sector. As the investigation progresses, it may have broader implications for corporate governance and financial oversight in India.

Reliance Power Limited (RPower) has informed stock exchanges about a significant development involving its promoter, Reliance Infrastructure Limited (RInfra). According to the disclosure, the Enforcement Directorate (ED) has provisionally attached certain assets of RInfra for alleged violations under the Prevention of Money Laundering Act (PMLA).

Key Points of the Disclosure

• Asset Attachment: The ED has provisionally attached certain assets of Reliance Infrastructure Limited.
• Alleged Violations: The attachment is related to alleged violations under the Prevention of Money Laundering Act.
• Impact Assessment: RInfra stated that there is no impact on its business operations, shareholders, employees, or other stakeholders.
• Management Clarification: The company clarified that Anil D. Ambani has not been on the Board of Reliance Infrastructure Limited for more than 3.5 years.
• RPower's Position: Reliance Power emphasized that none of its own assets have been attached in this process.

Regulatory Compliance

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Reliance Power has promptly disclosed this information to the stock exchanges. The company's disclosure demonstrates its commitment to transparency and regulatory adherence.

Market Implications

While the news of asset attachment by a regulatory body often raises concerns among investors, it's important to note that:

1. The attachment is provisional at this stage.
2. It affects the promoter company (RInfra) and not Reliance Power directly.
3. RInfra has stated that there is no impact on its business operations or stakeholders.

Investors and market watchers will likely monitor this situation closely for any potential effects on Reliance Power or broader market sentiment in the power and infrastructure sectors.

Conclusion

As this situation develops, stakeholders of both Reliance Power and Reliance Infrastructure will be keen to see how the companies address these regulatory challenges. The outcome of this provisional attachment and any subsequent proceedings could have implications for corporate governance practices and regulatory oversight in the sector.

Stakeholders are advised to stay informed about further updates from the companies and regulatory bodies regarding this matter.