The Enforcement Directorate (ED) has announced the seizure of assets valued at ₹2,032.81 crore belonging to Anil Ambani's Reliance Power Limited (RPL). This significant action was taken under the Foreign Exchange Management Act (FEMA) due to alleged violations.
Details of the Seizure
According to the ED, the seized assets comprise bank balances held by Reliance Power and its shareholding in Sasan Power Limited. The agency stated that these assets are equivalent in value to foreign exchange allegedly held outside India in contravention of Section 4 of FEMA.
Origin of the Investigation
The probe initiated following information provided by the Securities and Exchange Board of India (SEBI). SEBI had flagged write-offs and provisions totaling ₹2,101.46 crore recorded in Reliance Power's financial statements. These figures were linked to overseas investments and advances made to companies based in the British Virgin Islands (BVI) and Cayman Islands.
Between March 6 and March 8, 2026, the ED conducted searches under FEMA, seizing various incriminating documents and recording statements from multiple individuals.
Alleged Overseas Transaction Scheme
The ED's investigation outlines a complex scheme involving overseas transactions. In 2006, Reliance Natural Resources Limited (RNRL), which later merged with Reliance Power, raised $300 million through Foreign Currency Convertible Bonds. Of this, $275 million was invested in its wholly-owned Singapore subsidiary, Reliance Natural Resources (Singapore) Pte Ltd (RNRL-S).
The agency alleges that RNRL-S deposited these funds with Deutsche Bank (Suisse) SA in Geneva. These deposits were then purportedly used as collateral for loans extended to entities incorporated in the British Virgin Islands.
Investigators claim that these BVI entities were controlled and managed from India by the Reliance Anil Ambani Group, utilizing "front persons" acting under the group's directives.
Allegations of Round-Tripping and Cover-Up
A key allegation by the ED is that the loan proceeds were used for various purposes, including the "temporary round-tripping of funds" back into India via foreign entities based in Mauritius. These funds were reportedly utilized for the benefit of the Reliance Anil Ambani Group and other parties outside India.
The investigation also uncovered that the BVI entities allegedly failed to repay the loans from Deutsche Bank. To obscure this, the ED claims documents were fabricated and backdated to present the transactions as legitimate business dealings, showing RNRL-S and Indonesian subsidiaries of Reliance Power providing advances to the BVI entities for supposed business purposes.
The seizure was executed under Section 37A of FEMA, which empowers authorities to seize assets within India that are equivalent in value to foreign exchange unlawfully held abroad.