The latest disclosures added to pressure on a stock that has already been on a steady decline this year, even as the group reiterated that it was a “victim of fraud, forgery and cheating conspiracy”.
The chargesheet, filed before a Patiala House court on Friday, names former chief financial officer Ashok Kumar Pal, Reliance NU BESS Ltd., Rosa Power Supply Company Ltd., Odisha-based Biswal Tradelink and its managing director Partha Sarathi Biswal, Biothane Chemicals and consultant Amar Nath Dutta, among others, according to PTI. The case originates from a November 2024 complaint by the Delhi Police Economic Offences Wing, which alleged that Biswal Tradelink was engaged in issuing “fake” guarantees for a fee.
According to the ED, the matter concerns a Rs 68.2 crore bank guarantee submitted to the Solar Energy Corporation of India on behalf of Reliance NU BESS, previously Maharashtra Energy Generation Ltd, for a tender to build 1000 MW/2000 MWh standalone battery energy storage projects. Investigators said group officials were aware the guarantee was “fake” and that “fraudulent” endorsements were routed to SECI from a spoofed State Bank of India email domain.
“ED allegations have not yet passed through judicial scrutiny and the Company has not been held guilty of any wrong doing. As per law settled by the Supreme Court, company will get an opportunity to put across its case and facts before the court, even before cognizance, so filing of this complaint does not affect the affairs of the company in any manner,” the company said in a statement on Friday.
Once SECI raised concerns, Reliance obtained a fresh guarantee from IDBI Bank “within a day”, but it was rejected as it was submitted after the deadline. The chargesheet also asserts that officials attempted to keep the bid alive by seeking an endorsement from an SBI branch in Kolkata.
The agency alleges the group executed a “dummy” agreement and procured a “Certificate of Enlistment” for Reliance NU BESS from Kolkata Municipal Corporation using “bogus” address documents. It further claims that Biswal Tradelink arranged a fabricated guarantee purportedly issued by FirstRand Bank’s “non-existent” Manila branch and by ACE Investment Bank in Malaysia, with forged endorsements sent from the mimic domain “s-bi.co.in”.Investigators say Rs 6.33 crore was routed from Rosa Power Supply Company to Biswal Tradelink under “bogus transportation services”, supported by a “fake” work order and “fake” invoices. After the guarantee was arranged, a further Rs 5.40 crore was allegedly paid to depict the transaction as legitimate. When efforts to secure a valid endorsement failed, Reliance officials filed a complaint against Biswal Tradelink and its managing director. Biswal, Pal and Dutta were subsequently arrested and remain in judicial custody. The ED said it has attached assets worth Rs 5.15 crore during its probe.
Reliance Group has said that Anil Ambani “was not on the Board of Reliance Power Limited for more than 3.5 years and is not concerned with this matter in any manner” and that the company had disclosed the issue to the stock exchange on 7 November 2024.
“Reliance Power Limited continues to operate normally, remaining fully committed to growth, operational excellence, and the creation of sustainable value for all stakeholders, including its community of over 43 lakh shareholders,” the company said in a statement on Friday.
The stock’s decline on Monday takes its loss for the year to 20%, with a 22% fall over the past three months. Reliance Power is trading below all eight of its key simple moving averages, while its Relative Strength Index stands at 36.0 and its MACD remains below the centre line.
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