**Why Reliance Power’s CFO Has Been Arrested by ED**
*By Dwaipayan Roy | Oct 11, 2025, 11:08 AM*
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**What’s the story?**
The Enforcement Directorate (ED) has arrested Ashok Pal, the Chief Financial Officer (CFO) of Reliance Power, in connection with a money laundering case. The arrest took place on Friday night following questioning related to an alleged fake bank guarantee worth ₹68 crore. Pal is scheduled to be produced before a special court, where the ED will seek his remand for custodial interrogation.
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**Case details: Pal played a key role in financial activities**
The case centers around a bank guarantee of ₹68.2 crore submitted to the Solar Energy Corporation of India Limited (SECI) on behalf of Reliance NU BESS Limited, a subsidiary of Reliance Power. This bank guarantee was found to be fraudulent.
According to the ED, Ashok Pal was instrumental in the company’s financial dealings and played a crucial role in submitting this bogus bank guarantee with the intent to cheat.
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**Racket exposure: Reliance Group claimed it was a victim of fraud**
The investigation by the ED uncovered a larger racket involving the issuance of fake bank guarantees to various business groups. Odisha-based company Biswal Tradelink has been identified as the main player behind this fraudulent scheme.
In August, the ED conducted raids on Biswal Tradelink and its promoters and arrested its Managing Director, Partha Sarathi Biswal.
The Reliance Group has maintained that Reliance Power itself was a victim of fraud in this case.
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**Scheme details: Biswal Tradelink used similar email domains to SBI**
The ED’s preliminary probe revealed that Biswal Tradelink created a deceptive email domain closely resembling that of the State Bank of India (SBI) to create an illusion of authenticity.
This fake email domain was used to send forged communications to SECI. Additionally, the company facilitated fake billing to secure commissions and operated multiple undisclosed bank accounts which were involved in suspicious transactions worth crores of rupees.
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This arrest and ongoing investigation highlight the complexity of the fraud and the ED’s commitment to cracking down on financial crimes. More updates will follow as the case progresses.
https://www.newsbytesapp.com/news/business/ed-arrests-reliance-power-cfo-in-bank-guarantee-fraud-case/story