Why Did Anil Ambani’s Reliance Group Shares Plummet by 10% After ED Arrested a Senior Executive?
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Synopsis
In a shocking turn of events, shares of Anil Ambani's Reliance Group tumbled by 10% after the ED arrested a senior executive for alleged financial crimes. What does this mean for the future of the group and its investors? Read on to find out more about the unfolding situation.
Key Takeaways
- Shares of Reliance Group dropped by up to 10.5%.
- Senior executive Ashok Kumar Pal was arrested.
- ED is investigating under the PMLA.
- Allegations involve fake bank guarantees.
- Reliance Power shares previously surged by 15%.
Mumbai, Oct 13 (NationPress) Shares of companies within the Anil Ambani-led Reliance Group experienced a considerable downturn on Monday, with stock values decreasing by as much as 10.5 percent during intra-day trading. Reports indicate that the Enforcement Directorate (ED) apprehended Ashok Kumar Pal, a high-ranking executive at Reliance Power, on Saturday due to his alleged involvement in a case concerning fake bank guarantees and fraudulent invoicing.
By the end of trading, shares of Reliance Power settled at Rs 46.10, reflecting a drop of Rs 2.48 or 5.10 percent on the National Stock Exchange (NSE).
Similarly, Reliance Infrastructure saw its shares fall by 4.5 percent to Rs 231 each but managed to recover slightly, closing at Rs 238.
Pal has been placed in a two-day custody and is scheduled to appear before the court today after being interrogated for hours prior to his arrest on Friday night.
The investigation, conducted under the Prevention of Money Laundering Act (PMLA), focuses on alleged financial misconduct and possible regulatory violations.
This incident comes on the heels of a significant ED operation conducted on July 24, which involved searches at 35 locations associated with Reliance, affecting 50 companies and over 25 individuals.
The ongoing inquiry originates from a money laundering case registered following a CBI FIR, alleging the misuse of loans.
The involvement of Yes Bank and its former promoters is also under scrutiny, with the ED suspecting that loans totaling approximately Rs 3,000 crore, issued by Yes Bank between 2017 and 2019, were misappropriated.
Investigators claim that Pal was instrumental in redirecting company funds and presenting fake bank guarantees exceeding Rs 68 crore to the Solar Energy Corporation of India (SECI), with the intent to deceive a public sector entity.
Interestingly, just a few days earlier on October 10, shares of Reliance Power surged nearly 15 percent on the NSE, reaching a peak of Rs 50.75 amidst robust buying and significant trading volumes.
Data reveals that nearly 7 crore equity shares of the company changed hands that day, compared to the usual weekly and monthly averages of 2 crore shares.
Point of View
It is crucial to approach the developments surrounding the Reliance Group with a balanced view, acknowledging the gravity of the allegations while emphasizing the need for due process. Transparency and accountability are vital in upholding public trust in corporate governance.
NationPress
13/10/2025
Frequently Asked Questions
What triggered the fall in Reliance Group shares?
The shares fell due to the arrest of Ashok Kumar Pal, a senior executive, by the Enforcement Directorate in connection with an alleged fake bank guarantee case.
How much did Reliance Power shares drop?
Reliance Power shares decreased by 5.10 percent, closing at Rs 46.10.
What is the Enforcement Directorate investigating?
The ED is investigating alleged financial irregularities and violations under the Prevention of Money Laundering Act.
What were the previous trading patterns for Reliance Power shares?
On October 10, Reliance Power shares surged nearly 15 percent, hitting a high of Rs 50.75.
What role did Ashok Kumar Pal allegedly play?
Pal is accused of diverting company funds and submitting fake bank guarantees worth over Rs 68 crore.
