Reliance Power on Thursday said recent enforcement actions by the Enforcement Directorate (ED) have no bearing on its operations, finances, or stakeholders. The statement comes after multiple media reports confirmed that the ED conducted searches at over 35 premises and 50 companies linked to Anil Ambani’s Reliance Group in connection with a money laundering probe tied to the Yes Bank loan fraud case.
“These actions have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of Reliance Power,” the company said. It clarified that Reliance Power is a separate and independently listed entity with no business or financial links to either Reliance Communications Ltd (RCOM) or Reliance Home Finance Ltd (RHFL), the two entities reportedly at the centre of the investigation.
On Wednesday, the ED conducted the searches under Section 17 of the Prevention of Money Laundering Act (PMLA) as part of an expanding probe into alleged irregularities involving loans sanctioned by Yes Bank between 2017 and 2019. According to the ED, preliminary investigations revealed that loans worth around ₹3,000 crore were allegedly diverted to shell companies and other group entities associated with the Reliance Group.
Investigators have also found evidence suggesting possible bribery of Yes Bank officials, including its promoter. The agency flagged serious irregularities in the bank’s loan approval process, including the use of back-dated credit documents, lack of due diligence, and lending to firms with weak financials and overlapping directorships. In several cases, loan disbursals allegedly occurred on or even before the formal approval dates. The ED has also cited instances of loan evergreening, a practice where new loans are issued to repay old ones to avoid defaults.
The enforcement agency said that more than 50 companies and 25 individuals are currently under the scanner. The Securities and Exchange Board of India (SEBI) has submitted its own findings on RHFL, raising concerns over the doubling of its corporate loan book within a year and highlighting possible irregularities and procedural violations.
Reliance Power, however, distanced itself from these developments. It said RCOM has been under the Corporate Insolvency Resolution Process for over six years under the Insolvency and Bankruptcy Code, 2016. RHFL’s matters, meanwhile, have been fully resolved following a Supreme Court judgment.
“Similar allegations as those set out in the media reports are sub-judice and pending before the Hon’ble Securities Appellate Tribunal, as per publicly available information. Further, Mr. Anil D. Ambani is not on the Board of Reliance Power,” the company said. “Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Reliance Power.”
The company also stated that it remains focused on executing its business strategy and committed to creating long-term value for its stakeholders.
