Reliance Communications Probe Targets BSES Power Assets

Supreme Court proceedings into Reliance Communications' alleged fund diversion are now impacting critical infrastructure. Despite defenses claiming Anil Ambani was "cheated," Enforcement Directorate actions linked to the group's wider finances are affecting vital power distributors BSES Rajdhani Power Limited (BRPL) and BSES Yamuna Power Limited (BYPL).

ED Freezes ₹1,575 Crore in BSES Assets Amid Probe

The Supreme Court heard arguments Friday about the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) investigations into the alleged misuse of over ₹27,300 crore tied to Reliance Communications (RCOM). Anil Ambani's lawyers argued that "maybe he was cheated" in the deals. The CBI stated its investigations are progressing with two arrests made and more expected. A key development is the ED's provisional seizure of shares valued at ₹1,575 crore in BSES Rajdhani Power Limited and BSES Yamuna Power Limited. These companies are crucial electricity suppliers for Delhi, serving millions. Ambani's team argues these companies are targeted only because of their group affiliation, warning that the seizures limit essential operating funds and could affect electricity delivery. This legal action, now impacting real, functioning infrastructure, raises significant concerns.

BSES Companies Show Strong Operations Despite Legal Cloud

Despite the legal challenges, BRPL and BYPL maintain strong operational performance. BSES Rajdhani Power Limited reported ₹14,300 crore in revenue for FY25, with Aggregate Technical and Commercial (AT&C) losses at 6.12%. BSES Yamuna Power Limited posted ₹7,750 crore in revenue for FY25, with AT&C losses at 6.02%. Both companies hold significant regulatory assets (RAs): BRPL has INR180.3 billion at FYE25 and BYPL ₹11,738 crore as of March 2025. Reliance Infrastructure Ltd. (RInfra), which owns 51% of both BSES entities, is also involved in these group investigations. RInfra's stock trades at a low P/E ratio of 0.48 as of May 4, 2026. RCOM itself is largely inactive, under corporate insolvency since 2019, with its loan flagged as fraud by SBI and a subsidiary's credit facilities by Canara Bank. Total assets seized by the ED across the Anil Ambani Group have now exceeded ₹10,117 crore as of December 2025.

Broader Financial Distress Raises Concerns for Utilities

The Supreme Court's actions are part of a larger pattern of financial distress within the Anil Ambani group. The ED's seizure of BSES assets, though provisional, poses a serious risk to the ongoing operations and financial health of these essential utility providers. These seizures are part of a broader effort that has resulted in total asset seizures of over ₹10,117 crore from group entities. Reliance Communications itself faces allegations of loan fraud exceeding ₹40,185 crore, with several banks deeming its accounts fraudulent. Investigative reports also suggest financial fraud totaling over ₹41,921 crore by the group since 2006. Anil Ambani declared personal bankruptcy in a UK court in 2020, highlighting the group's severe financial difficulties. The group has sold assets worth over ₹73,250 crore between 2019 and 2025, but ongoing investigations and seizures point to a lengthy and challenging legal struggle. If the seizure of RInfra's stake in BRPL and BYPL becomes final, it could severely limit their cash flow, regardless of their operational performance. CARE Ratings has placed BRPL and BYPL on a negative rating watch due to these ED actions.

Future Outlook Uncertain for BSES Power

The future of the BSES entities depends heavily on the results of the ongoing ED investigations and the Anil Ambani group's legal approach. Although the Supreme Court has advised against "sensationalising" the RCOM probe, essential services face growing financial and operational risks. Investor confidence is low, and the scrutiny on group companies may discourage new investment and hinder debt restructuring. Resolving these legal issues and potentially releasing frozen assets will be key to their future financial stability.