The Enforcement Directorate (ED) has issued a seizure order covering assets worth about ₹2,032 crore linked to Reliance Power Ltd under the Foreign Exchange Management Act (FEMA). The ED’s action, carried out by its Headquarter Investigation Unit, is reportedly taken under Section 37A, which allows provisional attachment of assets during ongoing investigations.
According to the ED and reports, the agency alleges foreign fund diversion tied to overseas entities, including claims that deposits were used as collateral for loans to companies incorporated in the British Virgin Islands (BVI). The ED says these entities were controlled and managed from India by the Anil Ambani Group through “front persons.” The ED refers to alleged contraventions of FEMA provisions related to overseas transactions.
Reliance Power disputes the allegations and says relevant approvals were obtained for transactions dating to 2006 and 2008, involving foreign currency convertible bonds and overseas investments routed through an entity in Singapore. The company also says the seizure order is provisional, subject to confirmation by the competent authority, and that the order does not impose a financial penalty. It notes some shares covered by the order have been pledged to Power Finance Corporation (PFC) for more than 10 years and that the attached assets cannot be transferred, sold, pledged, or otherwise dealt with pending proceedings.
