Enforcement Directorate Arrests Third Person in ₹68 Crore Fake Bank Guarantee Probe Against Anil Ambani Group Company

The Enforcement Directorate (ED) has made its third arrest in connection with a money laundering probe against a group company of businessman Anil Ambani. Amar Nath Dutta was taken into custody on Thursday under the Prevention of Money Laundering Act (PMLA). This follows earlier arrests of Ashok Kumar Pal, former CFO of Reliance Power, and Partha Sarathi Biswal, MD of Biswal Tradelink. The case centers on an alleged fake bank guarantee of ₹68.2 crore submitted to the Solar Energy Corporation of India Limited (SECI) on behalf of Reliance NU BESS Limited, a subsidiary of Reliance Power. The ED claims Biswal Tradelink, an Odisha-based company, ran a racket that provided fake bank guarantees for businesses in exchange for a commission. Reliance Power, formerly Maharashtra Energy Generation Limited, has asserted it is a "victim of fraud, forgery and cheating conspiracy" and filed a criminal complaint. Anil Ambani is not involved, according to a group spokesperson, as he has not been on the board for over 3.5 years. The investigation stems from a Delhi Police FIR, which found that the fake bank guarantee was purportedly issued by FirstRand Bank in Manila, Philippines, despite the bank reportedly not having a branch there. Biswal Tradelink allegedly used email domains similar to the State Bank of India to deceive SECI.

Impact: This news could negatively impact investor sentiment towards Reliance Power and potentially other group companies due to allegations of financial irregularities and fraud. It highlights governance risks and could lead to further scrutiny from regulatory bodies. Impact Rating: 6/10

Difficult Terms Explained: * **Enforcement Directorate (ED):** A law enforcement agency in India responsible for enforcing economic laws and fighting economic crime. * **Money Laundering:** The illegal process of making large amounts of money generated by criminal activity appear to have come from a legitimate source. * **Prevention of Money Laundering Act (PMLA):** A special law in India enacted to combat money laundering. * **Bank Guarantee:** A promise from a bank that the financial obligations of a buyer or borrower will be met. If the buyer or borrower fails to fulfill their obligations, the bank will pay the money to the seller or lender. * **Subsidiary:** A company controlled by a holding company. * **FIR (First Information Report):** A report filed with the police or other authorities to initiate criminal proceedings. * **Economic Offences Wing (EOW):** A specialized unit within police departments that investigates economic and financial crimes. * **Facsimile:** A copy or imitation. (Used in context of email domain sounding similar). * **Paper Entity:** A company that exists only on paper, with little or no actual business operations or assets.