New Delhi: The Enforcement Directorate (ED) has seized assets worth more than ₹2,000 crore belonging to Anil Ambani-led Reliance Power Limited (RPL) in connection with an alleged Foreign Exchange Management Act (FEMA) violation case, officials said on Wednesday. Seized Assets Include Bank Balances and Equity According to the federal probe agency, the seized assets comprise funds deposited in the company’s bank accounts and its equity holdings in Sasan Power Limited. The ED launched its investigation following regulatory scrutiny by the Securities and Exchange Board of India (SEBI) regarding the write-off and provisioning of ₹2,101.46 crore in Reliance Power’s books. This amount pertained to foreign investments and advance payments channeled to entities based in the British Virgin Islands (BVI) and the Cayman Islands. Scrutiny of Foreign Investments and Fund Routing The probe agency stated that in 2006, Reliance Natural Resources Limited raised $300 million by issuing Foreign Currency Convertible Bonds (FCCBs), out of which $275 million was invested into its Singapore-based subsidiary. The ED alleged that this sum was subsequently deposited in a Swiss bank account and utilized as security to guarantee loans extended to entities incorporated in the British Virgin Islands. The agency further claimed that these offshore entities were effectively controlled and operated from India under instructions from the Anil Ambani Group. According to the ED, loan proceeds were deployed for multiple purposes, including temporary round-tripping of funds back into India through Mauritius-based shell entities, ultimately benefiting the group. Reliance Power Denies Allegations Issuing a response to the enforcement action, Reliance Power disputed the agency’s claims, stating that it considers the allegations unfounded and contentious. The company asserted that it will take all necessary legal steps, based on formal counsel, to protect its interests as well as the interests of its shareholders and other stakeholders. Post navigation Reliance Jio Platforms IPO Window Announced; Unveils Free Multilingual AI Course and Long-Term Roadmap
