ED files chargesheet against Reliance Power in fake guarantee scam.
The Enforcement Directorate (ED) has filed a chargesheet against Reliance Power in connection with a high-profile fake guarantee scam, marking a significant development in the ongoing investigation into financial irregularities within the company. The chargesheet, submitted to a special court, details alleged violations under the Prevention of Money Laundering Act (PMLA), highlighting the seriousness of the case and the potential legal consequences for the corporate giant.
The scam allegedly involved the creation of fake bank guarantees that were used to secure loans and financial instruments, resulting in significant losses for lenders and financial institutions. According to the ED, these fraudulent guarantees were presented to banks as authentic, enabling the company to access funds it was not legitimately entitled to. The case first came to light after complaints from banking institutions, prompting a coordinated investigation by the financial regulator and the investigative agency.
In its chargesheet, the ED claims to have uncovered a trail of transactions that point to intentional manipulation and misrepresentation. The agency has also named several key executives of Reliance Power as accused, asserting that they played active roles in orchestrating the scheme. Legal experts say that if the charges are proven, the case could lead to substantial penalties, including fines and imprisonment, and may also affect the company’s standing in financial markets.
Reliance Power, one of India’s major energy companies, has denied any wrongdoing, stating that it will fully cooperate with the authorities and provide all necessary documents to clarify the matter. The company also emphasized that its business operations continue as usual and that it remains committed to transparency and regulatory compliance.
The case has drawn attention across the corporate sector, raising concerns about governance and risk management practices in large conglomerates. Investors and financial institutions are closely monitoring developments, with many emphasizing the need for stricter internal checks to prevent similar scams in the future.
The chargesheet now paves the way for the next stage of legal proceedings, where the court will examine the ED’s evidence and decide on further action, including the framing of formal charges. The outcome of the case could have far-reaching implications, not just for Reliance Power, but also for corporate accountability and investor confidence in India’s financial ecosystem.