The Enforcement Directorate (ED) on Saturday arrested Ashok Kumar Pal, a senior executive at Reliance Power and a close associate of industrialist Anil Ambani, in connection with money laundering charges linked to alleged bank loan frauds totaling Rs 17,000 crore.

Who is Ashok Kumar Pal? 

Ashok Kumar Pal serves as the Executive Director and Chief Financial Officer (CFO) of Reliance Power Ltd. His arrest is part of the ongoing investigation into the massive loan fraud allegedly involving the company.

The case revolves around alleged financial misconduct involving Yes Bank and companies under the ADA Group, which was formerly headed by Anil Ambani. Authorities are probing the loans and transactions for irregularities that may have facilitated the massive fraud. Pal was taken into custody by the ED after being questioned at the agency’s Delhi office. The case involves allegations of a fake bank guarantee and fraudulent invoicing, according to an ET report. 

Allegations of fund diversion from public company

The ED has alleged that Pal, whose company is publicly listed with over 75% shares held by the public, played a key role in diverting funds from Reliance Power, impacting public money. According to the agency, Pal was authorised through a board resolution to finalise, approve, sign and execute all documents related to the Solar Energy Corporation of India (SECI) Battery Energy Storage System (BESS) tender. He was also allowed to use Reliance Power’s financial capacity to support the bid.

Part of broader ADA case linked to Yes Bank

The case is part of the ongoing ADA investigation, which involves financial irregularities linked to Yes Bank and companies under the ADA Group, previously led by industrialist Anil Ambani.

The ED has alleged that Anil Ambani and entities within the Reliance Group were involved in a loan fraud worth Rs 17,000 crore. In August, the agency had summoned Ambani for questioning as part of the ongoing probe.

The ED’s investigation follows extensive searches in August at 35 locations in Mumbai. These searches covered 50 companies and 25 individuals connected to the group under the Prevention of Money Laundering Act (PMLA).