ED Arrests Reliance Power CFO in Rs 17,000-Crore Fraud Case Linked to Anil Ambani

New Delhi, Oct 2025 : The Enforcement Directorate (ED) has arrested Ashok Kumar Pal, Chief Financial Officer (CFO) of Reliance Power Ltd and a close aide of industrialist Anil Ambani, in connection with a fake bank guarantee and money laundering investigation tied to the ADA Group.

Pal was taken into custody after questioning at the ED’s Delhi office and is set to be produced before a court. The probe relates to allegations of financial irregularities and fund diversion involving Yes Bank and companies under the ADA Group, previously headed by Anil Ambani. The ED has alleged that Anil Ambani and Reliance Group entities were involved in a Rs 17,000-crore loan fraud.

Earlier this week, the Bombay High Court upheld the State Bank of India’s (SBI) decision to classify the loan accounts of Anil Ambani and Reliance Communications (RCom) as “fraud.” The court ruled that SBI’s action was legally valid and well-reasoned.

A division bench comprising Justices Revati Mohite Dere and Neela Gokhale dismissed Ambani’s challenge to the SBI order on October 3. Ambani had contended that the bank’s action was invalid as he was not granted a personal hearing and was not provided with all relevant documents. The court, however, clarified that under the Reserve Bank of India’s Master Directions, borrowers are entitled only to submit a written representation, and a personal hearing is not required. Consequently, the bench rejected Ambani’s plea as lacking merit, affirming the classification of the accounts as fraudulent.

SBI had initially tagged the accounts of Reliance Communications and its promoter Anil Ambani as fraudulent on June 13, 2025, citing diversion of funds, breach of covenants, and related-party transactions. Following this, the bank approached the Central Bureau of Investigation (CBI) for appropriate action.

In a related development, Bank of Baroda also declared the loan accounts of Reliance Communications Ltd and Anil Ambani as fraudulent. The ongoing investigations by the ED are expected to probe the financial misconduct and recover misappropriated funds in line with India’s anti-money laundering and banking regulations.

The arrests mark a significant escalation in the ongoing crackdown on alleged corporate financial fraud involving high-profile industrialists, highlighting the enforcement agencies’ focus on transparency and accountability in large-scale corporate lending.