Reliance Group stock falls 7% after ED files chargesheet alleging fake bank guarantee case

Synopsis: Reliance Power shares plunged 6.8% to ₹35.10 after ED filed a PMLA chargesheet over a ₹68.2-crore fake bank guarantee and ₹6.33-crore fund diversion case.

The shares of the company that develops, constructs and operates power projects both in India as well as internationally are in focus after the ED filed a  chargesheet against the firm.

With the market capitalization of Rs. 14,681.99 crore, Reliance Power Ltd‘s share on Monday made a day low of Rs.35.10,  down by 6.8 percent from its previous day’s close price of Rs.37.69 per share. The share has given a return of 800 percent over the past five years.

What happened:

Reliance Power allegedly used a shell entity to obtain a fake bank guarantee from a non-existent foreign bank branch. They used a spoofed email (s-bi.co.in) for forged SBI endorsements. To fund this, Rs. 6.33 crore was routed as “bogus transportation services,” plus Rs.5.40 crore was paid as a fee to make the entire illegal arrangement look legitimate.

When SECI discovered the fraud, Reliance quickly secured a genuine bank guarantee, but it was rejected for being submitted late. Officials then allegedly tried to save the bid by submitting “bogus” address documents and a “dummy” agreement. After these attempts failed, they filed a complaint against the third-party facilitator to shift the blame.

Case: The ED’s chargesheet under the PMLA centers on the submission of a fake bank guarantee (Rs. 68.2 crore) for a major SECI energy tender. The fraud involved routing Rs. 6.33 crore from Reliance’s subsidiary, Rosa Power Supply Company, to a shell entity for “bogus transportation services” to arrange the fake guarantee

This fund movement was money laundering, as it used the proceeds of crime (the guarantee) to facilitate a new crime and show the transaction as legitimate. An additional Rs. 5.40 crore was allegedly paid with a “mala fide intent” to the shell company to depict the entire fraudulent arrangement as a genuine commercial deal.

Company’s Defense, The company maintains it acted bona-fidely and is a victim of fraud, forgery, cheating, and conspiracy committed by third parties. It highlights that it previously filed a criminal complaint against these third parties with the Delhi Police EOW.

Reliance Power stated that the ED’s allegations have not yet passed judicial scrutiny and it has not been held guilty of any wrongdoing. It states that the filing of the complaint does not affect its affairs as it will get an opportunity to present its case before the court.

About the company

Reliance Power has been established to develop, construct and operate power projects both in India as well as internationally. The Company on its own and through its subsidiaries has a large portfolio of power generation capacity, both in operation as well as capacity under development

Financial Highlights: the revenue from operations grew by 12 percent to Rs.1,974 crore in Q2 FY26 from Rs. 1,760 in Q2 FY25. EBDIT grew by 64 percent to Rs. 618 crore in Q2 FY26 from Rs. 376 crore in Q2 FY25. Accompanied by growth in Net profit of Rs.87.3 crore in Q2 FY26.

Written By Gourav Pratap Singh

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