Reliance Group Companies Deny Impact on Operations Amid Rs 7,500 Crore ED Property Attachment

Reliance Infrastructure Limited and Reliance Power Limited have issued statements to stock exchanges assuring investors that their business operations, performance, and future prospects remain unaffected by the Enforcement Directorate's (ED) recent attachment of properties valued at Rs 7,500 crore. The ED's action, based on provisional orders under the Prevention of Money Laundering Act (PMLA), is connected to alleged loan diversion from YES Bank between 2017 and 2019, primarily involving Reliance Communications and its associates.

The companies emphasized that the majority of the attached assets belong to Reliance Communications, which has been undergoing Corporate Insolvency Resolution Process (CIRP) for over six years and is no longer part of the Reliance Group since 2019. They also noted that Anil Ambani resigned from Reliance Communications' board in 2019 and from the boards of Reliance Infrastructure and Reliance Power over three and a half years ago.

Both Reliance Infrastructure and Reliance Power highlighted their financial strength, stating they are zero-bank-debt companies with significant assets and net worth. Reliance Infrastructure has assets worth Rs 65,840 crore and a net worth of Rs 14,287 crore, while Reliance Power has assets worth Rs 41,282 crore and a net worth of Rs 16,337 crore as of March 31, 2025. They also revealed filing a complaint with the Securities and Exchange Board of India (SEBI) on October 29, 2025, against a systematic campaign of price hammering and market manipulation by a bear cartel.

Impact: This news has a moderate impact on the Indian stock market. While the companies deny any operational impact, such large-scale asset attachments by a federal agency can create investor uncertainty and affect sentiment towards the broader group, even for entities claimed to be unaffected. The legal proceedings and the clarification about past association might lead to increased scrutiny. Rating: 6/10.

Difficult terms: Enforcement Directorate (ED): A law enforcement agency in India responsible for enforcing economic laws and fighting economic crime. Prevention of Money Laundering Act (PMLA): An Act of the Indian Parliament enacted to combat money laundering. Corporate Insolvency Resolution Process (CIRP): A process under the Insolvency and Bankruptcy Code, 2016, for the resolution of corporate debtors. Resolution Professional (RP): An insolvency professional appointed to manage the CIRP of a corporate debtor. Committee of Creditors (CoC): A committee comprising financial creditors of a corporate debtor, responsible for making decisions during the CIRP. National Company Law Tribunal (NCLT): A quasi-judicial body in India established under the Companies Act, 2013, to deal with corporate and insolvency related matters. Securities and Exchange Board of India (SEBI): The statutory body responsible for regulating the securities market in India. Bear cartel: A group of investors who collectively bet on a stock price going down, aiming to profit from its decline.