Reliance Power and Infrastructure Shares Plunge Amid ED Probe into Alleged Rs 17,000 Crore Loan Fraud
Shares of Reliance Power and Reliance Infrastructure fell sharply following news of the Enforcement Directorate (ED) summoning Anil Ambani for questioning in an alleged Rs 17,000-crore loan fraud case. Reliance Power shares dropped 4.16% to Rs 50.65, while Reliance Infrastructure fell nearly 5% to Rs 312.00. The ED investigation focuses on suspected diversion of loan funds and financial irregularities within the Reliance Group. SEBI's findings allege Rs 10,000 crore diversion by Reliance Infrastructure through transactions with CLE Pvt Ltd. Reliance Infrastructure's total financial exposure to CLE was reported at Rs 8,302 crore as of March 31, 2022, with write-offs of Rs 10,110 crore between FY17 and FY21. A source close to the Reliance Group disputes SEBI's findings, claiming lower exposure and ongoing recovery proceedings.

*this image is generated using AI for illustrative purposes only.
Shares of Reliance Power and Reliance Infrastructure experienced significant declines following news of the Enforcement Directorate (ED) summoning Anil Ambani for questioning in an alleged Rs 17,000-crore loan fraud case. The market reacted sharply to this development, with both companies seeing their stock prices tumble.
Market Impact
- Reliance Power shares dropped 4.16% to Rs 50.65
- Reliance Infrastructure saw a steeper decline, falling nearly 5% to Rs 312.00
ED Investigation Details
- Anil Ambani has been directed to appear before the ED on August 5
- The investigation focuses on suspected diversion of loan funds and financial irregularities within the Reliance Group
- ED conducted searches at 35 locations across Mumbai, covering 50 companies and 25 individuals
- The probe is being carried out under the Prevention of Money Laundering Act
SEBI's Findings
The Securities and Exchange Board of India (SEBI) has submitted findings from its own investigation, alleging:
- Rs 10,000 crore diversion by Reliance Infrastructure through transactions with CLE Pvt Ltd
- These transactions were allegedly disguised as intercorporate deposits without proper approvals
- SEBI's investigation covers the period from FY13 to FY23
- During this time, Reliance Infrastructure had annual dealings with CLE amounting to 25-90% of CLE's total assets
Financial Exposure and Write-offs
Metric | Amount (in Crores) |
---|---|
R Infra's total financial exposure to CLE (as of March 31, 2022) | 8,302.00 |
Write-offs by R Infra between FY17 and FY21 | 10,110.00 |
The write-offs were categorized under provisions for fair value adjustments and impairment losses.
Reliance Group's Response
A source close to the Reliance Group has disputed SEBI's findings:
- Claims the actual exposure was Rs 6,500.00 crore, lower than SEBI's reported figure
- States that recovery proceedings are underway
- Asserts that a settlement has been reached to recover the entire amount
As this situation continues to unfold, investors and market watchers will be closely monitoring further developments in the ED's investigation and its potential impact on the Reliance Group companies.
Historical Stock Returns for Reliance Infrastructure
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-5.00% | -8.82% | -23.30% | +26.53% | +45.36% | +971.13% |