ED seizes Reliance Power assets worth ₹2,032 crore under FEMA
Synopsis
The ED has seized ₹2,032.81 crore in Reliance Power assets — bank balances and stakes in Sasan Power — after tracing a ₹2,101 crore write-off to allegedly fraudulent overseas structures spanning Singapore, Geneva, the British Virgin Islands, and Mauritius. Investigators say documents were backdated to disguise the transactions, and the probe is still widening.
Key Takeaways
The Enforcement Directorate seized assets worth ₹2,032.81 crore from Reliance Power Ltd (RPL) under FEMA on 14 October 2026 .
Seized assets include RPL's bank balances and its shareholding in Sasan Power Limited .
The probe stems from a SEBI referral over write-offs of ₹2,101.46 crore linked to investments in the British Virgin Islands and Cayman Islands .
Investigators allege $275 million was routed through a Singapore subsidiary to Deutsche Bank Geneva deposits, then used as collateral for BVI entity loans.
The ED alleges backdated documentation was fabricated to disguise transactions as genuine business advances.
Further investigation is ongoing; additional asset actions remain possible.
The Enforcement Directorate (ED)'s Headquarters Investigation Unit in New Delhi has seized assets worth ₹2,032.81 crore belonging to Anil Ambani-led Reliance Power Ltd (RPL) under the Foreign Exchange Management Act (FEMA). The seizure, announced on Wednesday, 14 October, covers bank balances held by RPL and its shareholding in Sasan Power Limited — equivalent in value to foreign exchange allegedly held outside India in contravention of Section 4 of FEMA, according to an official statement from the agency.
What Triggered the Investigation
The probe was initiated on the basis of a referral from the Securities and Exchange Board of India (SEBI), relating to write-offs totalling ₹2,101.46 crore recorded in RPL's books of account. According to investigators, these write-offs were linked to overseas investments and advances made to companies registered in the British Virgin Islands (BVI) and the Cayman Islands. Search operations under FEMA were carried out from 6 to 8 March this year, during which investigators say incriminating evidence was recovered and statements from multiple individuals were recorded.
The Money Trail: Singapore, Geneva, and the BVI
Investigators say the funds trail begins with Reliance Natural Resources Ltd — since merged with RPL — which raised $300 million through Foreign Currency Convertible Bonds (FCCBs) in 2006. Of that, $275 million was reportedly channelled into a wholly owned Singapore subsidiary, Reliance Natural Resources (Singapore) Pte Ltd (RNRL-S).
RNRL-S is said to have placed these funds on deposit with Deutsche Bank (Suisse) SA, Geneva. Those deposits were then used as collateral for loans extended to BVI-registered entities. According to the ED's findings, the BVI entities were controlled and managed from India by the Reliance Anil Ambani Group through front persons acting on the group's directions.
Round-Tripping and Alleged Cover-Up
Investigators allege that loan proceeds were used for varied purposes, including the temporary round-tripping of funds to India via foreign entities based in Mauritius, with the money ultimately benefiting the Reliance Anil Ambani Group. The BVI entities reportedly failed to repay the loans taken against the Deutsche Bank collateral.
To mask the transactions, investigators allege that documents were fabricated to portray RNRL-S and Indonesian subsidiaries of RPL as having made advances to the BVI entities for legitimate business purposes. The ED says this documentation was backdated and prepared specifically to present the transactions as genuine commercial activity — a finding that significantly escalates the legal exposure for those involved.
Where the Case Stands
The ED has confirmed that further investigation is ongoing. This action comes against the backdrop of mounting regulatory and legal scrutiny of the Anil Ambani-led group across multiple fronts, including earlier SEBI orders and court proceedings. The seizure of domestic assets — rather than just a provisional attachment — signals the agency's intent to preserve recoverable value while the probe continues.
With investigations still in progress, fresh disclosures and further asset actions cannot be ruled out in the weeks ahead.
Point of View
Then pledged as collateral for BVI loans that allegedly never came back. The allegation of backdated documents is the sharpest edge here: it shifts the narrative from a regulatory infraction to a deliberate cover-up. The SEBI-to-ED referral pipeline is also worth watching — it signals closer coordination between market and financial-crimes regulators, a trend that could have implications for other groups under multi-agency scrutiny. For Anil Ambani, whose group has battled debt restructurings and regulatory orders for years, this is a fresh and serious escalation.
NationPress
14 Oct 2026
Frequently Asked Questions
Why did the ED seize Reliance Power assets?
The ED seized ₹2,032.81 crore in Reliance Power assets under FEMA after an investigation revealed that the company allegedly held foreign exchange outside India in contravention of Section 4 of FEMA. The probe was triggered by a SEBI referral relating to write-offs of ₹2,101.46 crore linked to overseas structures in the British Virgin Islands and Cayman Islands.
What assets were seized from Reliance Power?
The seized assets include Reliance Power's bank balances and its shareholding in Sasan Power Limited. Their combined value is equivalent to the foreign exchange allegedly held abroad illegally, according to the ED's official statement.
What is the alleged role of Deutsche Bank Geneva in this case?
Investigators say Reliance Natural Resources (Singapore) Pte Ltd placed $275 million on deposit with Deutsche Bank (Suisse) SA in Geneva, and those deposits were used as collateral for loans extended to British Virgin Islands entities allegedly controlled by the Reliance Anil Ambani Group. The BVI entities reportedly failed to repay those loans.
What is round-tripping and why is it relevant here?
Round-tripping refers to money being sent abroad and then returned to the same country through foreign entities to disguise its origin or evade regulations. The ED alleges that loan proceeds in this case were temporarily routed back to India via Mauritius-based entities for the benefit of the Reliance Anil Ambani Group.
What happens next in the Reliance Power FEMA case?
The ED has confirmed that further investigation is in progress, leaving open the possibility of additional seizures, arrests, or formal charges. The case also remains linked to SEBI's earlier findings, and any fresh disclosures could widen the scope of both regulatory and criminal proceedings.
