The assets include the bank balances of Reliance Power Ltd., and its shareholding in Sasan Power Ltd. Their cumulative value is equivalent to that of foreign exchange held outside India, allegedly in contravention of the Act, according to the ED. File | Photo Credit: Reuters
The Enforcement Directorate (ED) has seized assets worth ₹2,032.81 crore belonging to Reliance Power Limited in India under the Foreign Exchange Management Act (FEMA), the agency said on Wednesday (October 14, 2026).
The assets include the bank balances of Reliance Power Ltd., and its shareholding in Sasan Power Ltd. Their cumulative value is equivalent to that of foreign exchange held outside India, allegedly in contravention of the Act, according to the ED.
“Investigation was initiated on the basis of information received from the Securities and Exchange Board of India, pertaining to write-offs/provisions aggregating ₹2,101.46 crore made by Reliance Power Ltd. in its books of account. These write-offs were related to overseas investments and advances made to companies in the British Virgin Islands and the Cayman Islands,” the ED said.
In March, the agency had conducted searches in the same matter. “Investigation has revealed that Reliance Natural Resources Ltd (since merged with Reliance Power Ltd.) raised $300 million through Foreign Currency Convertible Bonds in 2006. Of this, $275 million was invested in its wholly owned Singapore subsidiary, Reliance Natural Resources (Singapore) Pte Ltd.,” it alleged.
“Reliance Natural Resources (Singapore) placed these funds on deposit with Deutsche Bank (Suisse) SA, Geneva. The deposits were used as collateral for loans extended to entities incorporated in the British Virgin Islands. The investigation found that these British Virgin Islands entities were controlled and managed from India by the Reliance Anil Ambani Group through front persons, who acted as per the Group’s directions,” the agency has alleged.
The ED alleged that loan proceeds were used for varied purposes, including temporary round-tripping of funds to India via Mauritius-based entities. “The British Virgin Islands entities failed to repay the loans extended by Deutsche Bank. As part of the cover up, documents were fabricated to show that Reliance Natural Resources (Singapore) and Indonesian subsidiaries of Reliance Power Ltd. had made advances to these British Virgin Islands entities for apparent genuine business purposes,” the ED has alleged.
Published - October 14, 2026 06:18 pm IST