ED seizes Rs 2,032.81 crore of Reliance Power assets under FEMA over alleged overseas funds
The ED has seized Rs 2,032.81 crore of Reliance Power's assets, including bank balances and its Sasan Power stake, alleging foreign exchange was held abroad in breach of FEMA.
The Enforcement Directorate (ED) has seized assets worth Rs 2,032.81 crore in India belonging to Reliance Power Ltd (RPL) under Section 37A of the Foreign Exchange Management Act (FEMA), 1999. The ED said on 14 October 2026 that the seized assets include RPL's bank balances and its shareholding in Sasan Power Limited. According to the ED, the value equals foreign exchange it alleges is held outside India in breach of Section 4 of FEMA.
What Happened
The ED said its investigation began on information from the Securities and Exchange Board of India (SEBI) about write-offs and provisions of Rs 2,101.46 crore in RPL's accounts. A write-off is when a company records that money it is owed or has invested is unlikely to come back. These related to overseas investments and advances to companies in the British Virgin Islands (BVI) and the Cayman Islands.
The ED conducted searches under FEMA from 6 to 8 March 2026. According to the ED, Reliance Natural Resources Ltd, since merged with RPL, raised US$ 300 million through foreign currency convertible bonds in 2006 and invested US$ 275 million in its Singapore subsidiary. The ED said that subsidiary placed the money on deposit with Deutsche Bank (Suisse) SA, Geneva, and the deposits were used as collateral for loans to BVI entities.
The ED alleges these BVI entities were controlled from India by the company's promoter group through front persons. The agency has alleged that the loan money was used for purposes including temporary round-tripping of funds to India through Mauritius-based entities, and was parked outside India for the group's benefit.
According to the ED, the BVI entities did not repay the loans. The ED alleges that documents were then fabricated and backdated to show that the Singapore subsidiary and Indonesian subsidiaries of RPL had made advances to the BVI entities for genuine business purposes. These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.
What It Means
For RPL shareholders, the seizure covers the company's bank balances and its stake in Sasan Power Limited according to the ED. The case arises from write-offs that SEBI flagged, and the ED's investigation is still continuing.
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
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Sources & Citations
- Enforcement Directorate press release — Enforcement Directorate