Why the ED Seized INR 2,032 Crore Assets of Anil Ambani's Reliance Power Under FEMA Rules
The Enforcement Directorate seized INR 2,032.81 crore in assets belonging to Anil Ambani's Reliance Power under FEMA. The action follows allegations of foreign exchange violations involving USD 275 million in overseas loans, round-tripping through Mauritius, and fabricated documentation linked to British Virgin Islands entities.
The Enforcement Directorate (ED) announced on Wednesday, October 14, that it has seized assets worth INR 2,032.81 crore belonging to Anil Ambani-led Reliance Power Limited (RPL) under the Foreign Exchange Management Act (FEMA). The seized assets include bank balances held by Reliance Power and its shareholding in Sasan Power Limited. "These assets are equivalent in value to the foreign exchange held outside India in contravention of Section 4 of FEMA," the probe agency said in a statement.
Investigation Background and Overseas Transactions
The enforcement action is linked to alleged foreign exchange violations concerning overseas investments, transactions via British Virgin Islands (BVI) entities, and funds routed through Mauritius. Jeffrey Epstein Offered a ‘Tall Swedish Blonde’ to Anil Ambani, Epstein Files Reveal.
ED Seizes INR 2,032 Crore in Assets Belonging to Anil Ambani's Reliance Power
ED has seized assets worth ₹2,032.81 crores belonging to Reliance Power Ltd under Section 37A of FEMA, including bank balances and its shareholding in Sasan Power Limited, equivalent in value to foreign exchange held abroad in alleged contravention of Section 4 in connection with fabricated write off of overseas investments and advances made to companies in British Virgin Islands (BVI) and the Cayman Islands.
— ED (@dir_ed) October 14, 2026
The investigation was initiated following information provided by the Securities and Exchange Board of India (SEBI) regarding write-offs and provisions totalling INR 2,101.46 crore recorded in Reliance Power's books, which were connected to overseas investments and advances made to companies in the British Virgin Islands and Cayman Islands. The ED conducted searches under FEMA between March 6 and March 8, 2026, recovering incriminating documents and recording the statements of multiple individuals.
Alleged Round-Tripping and Fund Routing
According to the agency, Reliance Natural Resources Limited (RNRL) - which later merged with Reliance Power - raised US 300 million through Foreign Currency Convertible Bonds in 2006. Of this sum, USD 275 million was invested in its wholly owned Singapore subsidiary, Reliance Natural Resources (Singapore) Pte Ltd (RNRL-S). The ED alleged that RNRL-S deposited these funds with Deutsche Bank (Suisse) SA in Geneva, using the deposits as collateral for loans extended to entities incorporated in the British Virgin Islands. Investigators stated that these BVI entities were managed and controlled from India by the Reliance Anil Ambani Group through front persons.
The agency further alleged that loan proceeds were utilised for various purposes, including "temporary round-tripping of funds into India through foreign entities based in Mauritius." The funds were reportedly used for the benefit of the group and parties outside India, while the BVI entities ultimately failed to repay the loans. To obscure the transactions, the ED claimed that backdated documents were fabricated to present RNRL-S and Reliance Power's Indonesian subsidiaries as having provided genuine business advances to the BVI entities. The assets were seized under Section 37A of FEMA, which empowers authorities to seize domestic assets equivalent in value to foreign exchange allegedly held abroad in violation of regulations.
(The above story first appeared on LatestLY on Oct 15, 2026 09:58 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
