Synopsis: Delhi Police arrested Reliance Power’s CFO, Ashok Kumar Pal, and two associates for allegedly using forged bank guarantees worth over Rs. 136 crore to secure a Solar Energy Corporation of India (SECI) tender. The charges involve sophisticated document fabrication, including fake SMS confirmations.
Reliance Power Limited’s Chief Financial Officer, Ashok Kumar Pal, along with two associates, has been arrested by the Economic Offences Wing (EOW) of the Delhi Police in connection with an alleged Rs. 136 crore forgery case. Reliance Power has a total market capitalization of Rs. 12,026.82 crore, according to data on the NSE. The stock was listed on the exchanges on February 11, 2008.
Reliance Power shares were trading at Rs. 29.05 apiece on the National Stock Exchange; the stock has gone down around 2% over the last five sessions, while it has surged about 38.53% in the 30 days.
Over a six-month period, the stock has given a negative return of 35.56%, whereas on a year-on-year basis it has declined nearly 33.3%, reflecting mixed overall performance. The stock’s 52-week high was Rs. 76.50 and 52-week low was Rs. 20.17.
The allegations are linked to a tender floated by the Solar Energy Corporation of India (SECI), where fraudulent bank guarantees were reportedly submitted. According to investigators, the guarantees were submitted through Reliance NU BESS Ltd, a subsidiary of the company, and were claimed to be issued by foreign banks.
To make these documents appear legitimate, the accused allegedly created fake email communications and fabricated Structured Financial Messaging System (SFMS) confirmations, falsely attributed to the State Bank of India. SBI later denied issuing any such confirmations, exposing the alleged fraud.
Authorities further stated that the accused conspired with intermediaries, paying substantial amounts to arrange forged documents and endorsements to secure the SECI tender. The involvement of a senior executive has raised serious concerns regarding internal controls, compliance mechanisms, and governance practices within the company.
Investigations by the Enforcement Directorate are still underway, with the CFO and others currently in police custody, while Reliance Power Limited has stated that it considers itself a victim of fraud and plans to defend its position in court. At the same time, the company’s recent steps to strengthen governance, such as setting up a Board of Management in November 2025 are now being viewed against the backdrop of these developments.
As the case unfolds, uncertainties remain around the outcome of the investigations, the SEBI forensic audit and how all of this may influence the company’s ability to secure future tenders and rebuild confidence among regulators and stakeholders.
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