Reliance Power Shares Plunge 5% as CFO Resigns Following Arrest in Money Laundering Case

Shares of

er Ltd tumbled over 5% on Monday after the Enforcement Directorate (ED) arrested the company's Chief Financial Officer, Ashok Kumar Pal, in a money laundering probe linked to an alleged fake bank guarantee worth Rs 68 crore. Pal has resigned from his position with immediate effect to cooperate with the investigations. The stock was trading sharply lower during the session, reflecting investor concerns over the unfolding scandal. Reliance Power informed stock exchanges on October 11 about Pal's resignation, which came hours after his arrest late on October 10 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. Pal was produced before a Delhi court on the morning of October 11, where the ED secured two days of custody to further probe the case. The allegations stem from a criminal complaint filed by the company itself with the Economic Offences Wing (EOW) of Delhi Police in October last year. The complaint highlighted a fake endorsement on a bank guarantee issued by a foreign bank, leading to the registration of a First Information Report (FIR) in November. This development adds to the challenges for Reliance Power, already navigating a competitive energy sector. The market awaits further clarity on the probe's implications for the company's operations and leadership.