The Enforcement Directorate has issued a provisional order to seize ₹2,032.81 crore in assets from Reliance Power, citing alleged violations of foreign exchange rules. The move targets shares of the company’s subsidiary, Sasan Power, which are already pledged to lenders. Reliance Power is contesting the allegations, and the stock saw a decline of approximately 1% following the announcement.
The Enforcement Directorate (ED) has issued a provisional order to seize assets worth ₹2,032.81 crore from Reliance Power, citing alleged violations of the Foreign Exchange Management Act (FEMA). This regulatory action is linked to an investigation into the company’s historical financial dealings that trace back to 2006.
The seized assets primarily consist of shares of Sasan Power Limited, a wholly-owned subsidiary of Reliance Power, which are valued at ₹2,026.65 crore. The remaining ₹6.16 crore consists of bank balances. This development brings renewed regulatory scrutiny to the company’s past capital structure and overseas fund management.
A key complexity in this situation involves the status of these assets. The shares of Sasan Power Limited being targeted are already pledged as security to Power Finance Corporation (PFC), a government-owned lender, under existing debt arrangements. This creates an overlapping conflict between the regulatory freeze and the interest of the lender, which may be a point of concern for stakeholders tracking the company’s debt obligations.
The investigation was initiated following findings shared by the Securities and Exchange Board of India (SEBI) regarding write-offs and provisions exceeding ₹2,100 crore found in the company’s financial records. The ED alleges that these transactions were part of a diversion of funds through foreign shell entities. In a formal response to the order, Reliance Power has stated that it is actively contesting these allegations. The company maintains that the historical transactions were executed with the necessary approvals and emphasizes that the current seizure order is provisional, meaning the matter is still subject to legal review.
Reliance Power shares experienced a decline of approximately 1.05% on October 14, 2026, following the news. For investors, the immediate monitorable will be the company's legal progress in defending these claims and whether this regulatory move impacts its operational flexibility or its ability to service debt linked to the pledged assets. The company's future disclosures regarding this matter will be essential for understanding the potential long-term financial impact.