Reliance Power and Infrastructure Shares Plunge Amid ED Probe into Alleged Rs 17,000 Crore Loan Fraud

1 min read     Updated on 01 Aug 2025, 09:57 AM
scanxBy ScanX News Team
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Overview

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.

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*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 Day5 Days1 Month6 Months1 Year5 Years
-5.00%-8.82%-23.30%+26.53%+45.36%+971.13%
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Reliance Infrastructure JV Receives ₹560.21 Crore from MMRDA in Supreme Court-Directed Payment

1 min read     Updated on 29 Jul 2025, 02:35 PM
scanxBy ScanX News Team
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Overview

Reliance Infrastructure's joint venture, Mumbai Metro One Private Limited (MMOPL), has received ₹560.21 crore from MMRDA following a Supreme Court directive. This payment is 50% of an arbitration award challenged by MMRDA. The case originated from a Bombay High Court order for MMRDA to deposit ₹1,169.00 crore. RInfra holds a 74% stake in MMOPL, potentially benefiting significantly from this development.

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*this image is generated using AI for illustrative purposes only.

Reliance Infrastructure Limited (RInfra) has announced a significant development in its ongoing arbitration case with the Mumbai Metropolitan Region Development Authority (MMRDA). The company's joint venture, Mumbai Metro One Private Limited (MMOPL), has received a payment of ₹560.21 crore from MMRDA, following a directive from the Supreme Court of India.

Background of the Case

The payment stems from an arbitration award in favor of MMOPL, a joint venture in which Reliance Infrastructure holds a 74% stake, with MMRDA holding the remaining 26%. The dispute had been ongoing, with previous court proceedings at the Bombay High Court.

Supreme Court Intervention

According to the LODR (Listing Obligations and Disclosure Requirements) filing by Reliance Infrastructure, MMRDA had challenged a Bombay High Court order dated June 10, 2025, through a Special Leave Petition in the Supreme Court. The High Court had initially directed MMRDA to deposit the entire awarded amount of approximately ₹1,169.00 crore, which included accrued interest as of May 31, 2025.

Current Development

The Supreme Court, in its ruling on the Special Leave Petition, modified the High Court's order and directed MMRDA to deposit 50% of the award amount. In compliance with this directive, MMRDA has now deposited ₹560.21 crore with the Registry of the Bombay High Court.

Implications for Reliance Infrastructure

This payment represents a partial realization of the arbitration award for MMOPL and, by extension, Reliance Infrastructure. As the majority stakeholder in the joint venture, RInfra stands to benefit significantly from this development.

The company has duly informed the stock exchanges of this material development, in line with regulatory requirements under SEBI's Listing Obligations and Disclosure Requirements.

Looking Ahead

While this payment marks a crucial milestone in the arbitration process, it's worth noting that it represents only half of the total awarded amount. The fate of the remaining portion and any further legal proceedings remain to be seen.

Investors and market watchers will likely keep a close eye on how this development impacts Reliance Infrastructure's financial position and its ongoing projects in the infrastructure sector.

Historical Stock Returns for Reliance Infrastructure

1 Day5 Days1 Month6 Months1 Year5 Years
-5.00%-8.82%-23.30%+26.53%+45.36%+971.13%
Reliance Infrastructure
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