Categories: Business & Finance News

ED arrests Reliance Power executive Ashok Kumar Pal in money laundering case tied to ADA Group and Yes Bank

ED arrests Reliance Power executive Ashok Kumar Pal in money laundering case tied to ADA Group and Yes Bank

New Arrest in a High-Profile Finance Case

The Enforcement Directorate (ED) has arrested Ashok Kumar Pal, an executive director and chief financial officer at Reliance Power, in a money laundering investigation linked to the so-called ADA Group and Yes Bank. Pal, a longtime aide of industrialist Anil Ambani, was taken into custody late Friday after questioning at the ED’s Delhi office. He is expected to be produced before a court for remand proceedings, with a judge slated to decide on his custody on Saturday morning.

The arrest underscores the ED’s ongoing focus on complex financial misconduct allegations that tie public sector-like financial operations to private corporate entities. Pal’s role, according to ED filings, centers on facilitating a scheme involving inflated invoicing and the use of a fake bank guarantee to siphon public funds through legitimate-looking channels.

What the ED Claims

Officials allege that Pal helped orchestrate a fake bank guarantee worth over Rs 68 crore that was submitted to the Solar Energy Corporation of India (SECI). The ED maintains that funds were diverted via bogus invoices and a bank guarantee racket that used spoofed email domains simulating well-known banks, including state-owned lenders, to give the forged instruments a veneer of authenticity.

Further, the agency claims Pal played a central part in selecting Biswal Tradelink Pvt Ltd (BTPL) to execute the fake guarantee. BTPL’s director, Partha Sarathi Biswal, is already in judicial custody as part of the investigation. The ED asserts that this sequence of actions was designed to misappropriate public money into ADA Group-controlled entities.

Background on the ADA Group Case

The ADA Group case has featured a broad probe into allegations of financial misconduct involving Yes Bank and several companies associated with the ADA umbrella, a concern long linked with Anil Ambani’s business empire. The ED’s monitoring suggests a web of transactions that allegedly diverted funds intended for credit and liquidity support into financially stressed entities within the ADA Group network.

In August, the ED conducted searches across 35 locations in Mumbai, touching 50 companies and 25 individuals connected to the group under the Prevention of Money Laundering Act (PMLA). The agency’s activity reflects a broader effort to uncover illicit channels that exploit bank guarantees and invoicing practices for public funds’ misappropriation.

Recent Developments and Broader Implications

The ED’s move follows earlier steps in the same probe, with public statements emphasizing the role of impersonated banking channels and fraudulent guarantees. The case has drawn attention not only to the ADA Group’s financial dealings but also to the mechanisms by which large privately held business interests may interact with public financial instruments.

Separately, the Central Bureau of Investigation (CBI) has filed charges in related corruption cases that allege conspiracy involving Anil Ambani and executives within the ADA framework, suggesting deliberate channels to route Yes Bank funds toward ADA Group entities. Ambani was summoned for questioning in August as part of the broader inquiry, signaling the government’s intensified scrutiny of the conglomerate’s lending and guarantee practices.

What Comes Next

Pal’s remand hearing on Saturday will determine how long he remains in custody as investigators pursue additional evidence to map the flow of funds and identify other beneficiaries. The case continues to unfold, with prosecutors likely to press for access to additional documents and communications that support the allegations of fake guarantees and diversion of public money.

As this story develops, observers note that such prosecutions aim to reinforce accountability in financial markets and reassure public confidence in the integrity of large-scale infrastructure investments and energy projects in India.