**Why Reliance Power’s CFO Has Been Arrested by the ED**
*By Dwaipayan Roy | Oct 11, 2025, 11:08 AM*
**Overview**
The Enforcement Directorate (ED) has arrested Ashok Pal, the Chief Financial Officer (CFO) of Reliance Power, in connection with a money laundering case. The arrest took place on Friday night following questioning related to an alleged fake bank guarantee worth ₹68 crore. Pal is scheduled to be produced before a special court, where the ED will seek his remand for custodial interrogation.
**Details of the Case**
According to the ED, Ashok Pal played a key role in the financial activities of the company and was instrumental in submitting a bogus bank guarantee on behalf of Reliance NU BESS Limited, a subsidiary of Reliance Power. The fake bank guarantee, valued at ₹68.2 crore, was submitted to the Solar Energy Corporation of India Limited (SECI) with the intent to defraud.
**Exposure of a Larger Racket**
The ED’s investigation has uncovered a broader racket involving the provision of fake bank guarantees to various business groups. An Odisha-based company, Biswal Tradelink, has been identified as a primary player in this fraudulent scheme. In August, the agency conducted searches on the firm and its promoters and arrested its Managing Director, Partha Sarathi Biswal.
Earlier, the Reliance Group had stated that Reliance Power was a victim of fraud in this matter.
**How the Scheme Operated**
Preliminary investigations revealed that Biswal Tradelink used an email domain strikingly similar to that of the State Bank of India (SBI) to create a false impression of authenticity. This fake email domain was used to send forged communications to SECI.
Additionally, the company facilitated fake billing for commission purposes and operated multiple undisclosed bank accounts used for suspicious transactions amounting to crores of rupees.
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The ED continues its investigation as it seeks to bring all those involved in this fraud to justice.
https://www.newsbytesapp.com/news/business/ed-arrests-reliance-power-cfo-in-bank-guarantee-fraud-case/story