ED arrests Reliance Power CFO Ashok Kumar Pal in money laundering case
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Ashok Kumar Pal, the Chief Financial Officer (CFO) of Reliance Power Ltd and a close associate of industrialist Anil Ambani, has been arrested by the Enforcement Directorate (ED) in a case involving alleged fake bank guarantees.
Pal was detained as part of an ongoing money laundering probe tied to the ADA Group. After extensive questioning at the ED’s Delhi office, he was taken into custody and was expected to appear before a judge.
The investigation focuses on financial irregularities linked to Yes Bank and companies under the ADA Group, previously led by Anil Ambani. Authorities allege the Reliance Group engaged in a loan fraud scheme amounting to ₹17,000 crore.
This development follows a recent Bombay High Court ruling supporting the State Bank of India’s (SBI) designation of Anil Ambani’s and Reliance Communications’ loan accounts as fraudulent. The court affirmed the bank’s decision adhered to legal standards, dismissing Ambani’s petition challenging the classification.
The court noted that while RBI guidelines allow borrowers to submit written responses, they do not mandate personal hearings in such cases. It concluded SBI had valid grounds for its fraud classification, citing fund diversion, breached agreements, and unauthorized transactions.
On June 13, SBI formally labeled Reliance Communications and Anil Ambani’s accounts as fraudulent, prompting the bank to alert the Central Bureau of Investigation (CBI). Bank of Baroda has similarly categorized these accounts as fraudulent.
(Inputs from IANS)
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