The Enforcement Directorate (ED) has arrested Ashok Kumar Pal, the Chief Financial Officer (CFO) and a senior executive of Reliance Power Ltd. and a close aide of industrialist Anil Ambani, in connection with an ongoing money laundering investigation.
Pal was arrested in Delhi following hours of questioning under the Prevention of Money Laundering Act (PMLA) and has been remanded to two days of ED custody.
The probe is part of a broader investigation into alleged financial irregularities involving the Reliance Anil Ambani Group (ADA Group) and Yes Bank.
The ED’s investigation focuses on a āwell-planned schemeā to siphon off public funds and defraud banks, primarily concerning the illegal diversion of approximately ā¹3,000 crore in loans disbursed by Yes Bank between 2017 and 2019.
Pal is specifically accused of a crucial role in a scheme involving a bogus bank guarantee (BG) worth over ā¹68 crore submitted to the Solar Energy Corporation of India (SECI).
The ED alleges that Pal oversaw the planning and concealment of the forged BG, which was purportedly issued by a non-existent branch of FirstRand Bank in the Philippines.
Furthermore, he is accused of facilitating the selection of a small, non-credible firm, Biswal Tradelink Pvt Ltd (BTPL), to provide the fake guarantee and of diverting funds through fake transport invoices amounting to several crores.
The broader case involves allegations of a ā¹17,000-crore loan fraud linked to the ADA Group, and Pal’s actions, the ED asserts, have caused significant loss to public shareholders and undermined corporate governance.