Business · Companies · 2 hrs ago
India seizes Reliance Power assets worth 2,032.81 crore rupees
India’s Enforcement Directorate ordered the seizure of Reliance Power assets worth 2,032.81 crore rupees under foreign-exchange rules.
The company, part of Anil Ambani’s group, has bank funds and a stake in Sasan Power among the assets affected.
The investigation followed action by India’s securities regulator over 2,101.46 crore rupees that Reliance Power wrote off or set aside in its accounts.
The money was linked to overseas investments and advances involving companies in the British Virgin Islands and the Cayman Islands.
The agency alleges that funds raised through bonds and routed through a Singapore subsidiary supported loans to offshore companies, and that the transactions benefited the group.
Reliance Power disputes the allegations and says it will take appropriate steps to protect its interests and those of its shareholders.
The seizure order was issued on October 12, and the investigation is continuing.
India’s Enforcement Directorate said it had ordered the seizure of Reliance Power assets worth 2,032.81 crore rupees under a foreign exchange investigation.
The order, issued on October 12 under Section 37A of the Foreign Exchange Management Act, covers the company’s bank balances and its shareholding in Sasan Power.
The investigation followed action by the Securities and Exchange Board of India over 2,101.46 crore rupees written off or provided for in Reliance Power’s accounts.
The ED alleges that funds linked to overseas investments and loans benefited the Reliance Anil Ambani Group.
Reliance Power has called the allegations disputed and said it will take appropriate steps after seeking legal advice.
- Who
- India’s Enforcement Directorate and Reliance Power, a company in the Anil Ambani Group.
- What
- The ED ordered the seizure of Reliance Power assets worth 2,032.81 crore rupees under FEMA. The company says it disputes the allegations.
- When
- The seizure order was issued on October 12. The ED announced the action on October 14.
- Where
- The assets are in India and include bank balances and shares in Sasan Power.
- Why
- The action is part of an ED investigation into alleged foreign exchange violations involving overseas investments and advances.
Enforcement Directorate
Reliance Power
Basis for action
Enforcement Directorate
The ED alleges funds linked to overseas investments and loans benefited the Reliance Anil Ambani Group.
Reliance Power
The company calls the allegations disputed and says it will take appropriate steps after legal advice.
Overseas entities
Enforcement Directorate
The ED says BVI entities were controlled and managed from India by the group through people acting on its instructions.
Reliance Power
Not stated
Reliance Natural Resources Limited raised 300 million US dollars through foreign currency convertible bonds, according to the ED.
Reliance Power said the case involved a foreign investment made through a Singapore subsidiary.
The ED issued an order to seize assets worth 2,032.81 crore rupees under FEMA Section 37A.
Reliance Power said in a regulatory filing that it disputed the ED’s allegations and would take appropriate steps.
The ED announced the seizure.
- Seizure order
- 2,032.81 crore rupees
- Order date
- October 12
- Sasan Power shares
- 2,026.65 crore rupees
- Bank balance
- 6.16 crore rupees
- Amount in accounts under review
- 2,101.46 crore rupees
- Overseas entities mentioned
- British Virgin Islands and Cayman Islands
3 sources
What people are saying
This order relates to Foreign Currency Convertible Bonds issued in 2006 and a foreign investment made in a Singapore subsidiary in 2008, for which all necessary approvals were obtained.
disputed
RNRL-S deposited this amount with Deutsche Bank (Swiss) SA in Geneva. This deposit was used as collateral for loans given to companies incorporated in the British Virgin Islands.