Reliance Power shares fell more than 5% on October 15 after the Enforcement Directorate (ED) seized assets worth ₹2,032.81 crore in connection with a Foreign Exchange Management Act (FEMA) investigation involving the Anil Ambani-led group company. The seized assets include bank balances and shareholdings in Sasan Power, according to the agency.

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The seizure order was issued on October 12 under Section 37A of FEMA. The company has disputed the allegations and stated that it will take appropriate legal steps to protect its interests and those of its shareholders.

The investigation reportedly follows regulatory scrutiny of write-offs and provisions worth ₹2,101.46 crore recorded in Reliance Power’s books. These relate to overseas investments and advances involving entities in the British Virgin Islands and the Cayman Islands.

According to the ED, the case traces back to 2006, when Reliance Natural Resources, which later merged with Reliance Power, raised $300 million through foreign currency convertible bonds. Of this amount, $275 million was reportedly invested in its Singapore subsidiary before being deposited with Deutsche Bank in Geneva and used as collateral for loans to overseas entities.

The agency alleges that some transactions involved fund diversion, temporary round-tripping of money into India and fabricated or backdated documents intended to portray the transactions as legitimate business dealings.

For investors, the immediate focus will remain on further regulatory developments, the company’s response and potential financial implications of the asset seizure. However, the allegations remain subject to legal proceedings, and the share price reaction alone does not determine the company’s long-term prospects.