In the latest development in the Anil Ambani-led Reliance Group bank fraud saga, the Enforcement Directorate has arrested Ashok Kumar Pal, Executive Director and Chief Financial Officer (CFO) of Reliance Power, on charges of alleged loan fraud. The agency has received 2-day custody of the company executive.
The arrest of a senior executive of Anil Ambani-led Reliance Group comes after a months-long high-voltage drama of bankruptcy, loan fraud allegations, ED and CBI raids and more.
Meanwhile, Reliance Power and Reliance Infrastructure have repeatedly maintained that the raids by ED and CBI in connection with Reliance Communications and Anil Ambani have no impact on their businesses.
Here is a completed timeline of the developments in fraud allegations involving the Reliance Group
The financial troubles and bankruptcy
Following the substantial debt of nearly Rs 40,413 crore from banks and vendors, Reliance Communications initiated the Corporate Insolvency Resolution Process (CIRP) with the National Company Law Tribunal (NCLT) in June 2019.
The Reliance Comm insolvency plan has not been very smooth. While the company’s Committee of Creditors approved the resolution plan in March 2020, the insolvency proceedings still remain underway, as the NCLT has not yet given its final approval.
SBI fraud allegations
In June 2025, the State Bank of India classified Reliance Communications and Anil Ambani as fraud in a matter relating to the bank’s outstanding debt of Rs 2,227.64 crore, alongside a non-fund-based bank guarantee of Rs 786.52 crore.
The State Bank simultaneously lodged a formal complaint with the CBI against Reliance Communications and Anil Ambani.
Subsequently, Reliance Communications approached the Bombay High Court, challenging the fraud allegations made by the State Bank; however, the High Court upheld the bank’s decision regarding the classification of fraud.
Following the State Bank’s fraud classification, other creditors, Bank of India, Bank of Baroda and Canara Bank, also classified Reliance Communications, Anil Ambani, and other group companies like Reliance Infra and Reliance Power as fraudulent.
ED and CBI investigation
In July, the Enforcement Directorate raided approximately a dozen locations linked to Reliance Communications, Reliance Infra, and Reliance Power on charges of money laundering.
Soon after, in August, the Central Bureau of Investigation also filed an FIR and chargesheet against Reliance Comm, Anil Ambani and other group companies based on multiple incidents of bank fraud.
At the same time, ED filed money laundering cases and searched the locations of multiple companies, summoning several company executives.
In August, the CBI also conducted search operations at Anil Ambani’s residence and corporate office on bank fraud allegations
Yes Bank loan and arrest
In the latest development, on September 20, the CBI filed against chargesheet against Anil Ambani and others in connection with alleged fraudulent transactions between his companies and Yes Bank, causing a loss of Rs 2,796 crore to the bank.
The arrest of Reliance Power CFO on October 11 comes in connection with the fraudulent transactions between the Anil Ambani company and Yes Bank.