Enforcement Directorate seizes ₹2,032.81cr assets from Reliance Power under FEMA
Big news in the corporate world: The Enforcement Directorate (ED) has seized assets worth ₹2,032.81 crore from Reliance Power under the Foreign Exchange Management Act (FEMA).
This includes bank balances and shares tied to Sasan Power Ltd.
The ED says these are equivalent to that of foreign exchange held outside India, allegedly in contravention of the Act.
Probe over Reliance Power ₹2,101.46cr write-offs
It all started when the ED initiated the investigation on the basis of information received from the Securities and Exchange Board of India and write-offs/provisions totaling ₹2,101.46 crore by Reliance Power.
Digging deeper, investigators found that back in 2006, a Reliance subsidiary raised $300 million via bonds and sent $275 million to its Singapore arm.
According to the ED, this money was then cycled through offshore companies and brought back to India disguised as business deals, a move they're calling round-tripping.