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Anil Ambani's Reliance Power Faces ED Action: Assets Worth ₹2,032.81 Crore Under Seizure Order

Posted on 14th Oct 2026 04:52 pm by rohit kumar

Anil Ambani-led Reliance Power Ltd has faced a major regulatory setback after the Enforcement Directorate (ED) issued an order for the seizure of assets worth ₹2,032.81 crore in connection with alleged violations of foreign exchange regulations. The action covers shares worth ₹2,026.65 crore in the company's wholly owned subsidiary, Sasan Power Ltd, and bank balances of ₹6.16 crore.

 

Reliance Power disclosed the order in a regulatory filing, stating that it received the order on October 12, 2026, under Section 37A(1) of the Foreign Exchange Management Act (FEMA). The company has disputed the allegations and said the matter concerns historical transactions for which it maintains that the necessary approvals had been obtained.

 

The order has put Reliance Power shares in focus, with investors assessing the potential legal, financial and market implications. The company has also highlighted that the Sasan Power shares covered by the order were already pledged to Power Finance Corporation Ltd, a government-owned undertaking.

 

ED Attaches Reliance Power Assets Worth ₹2,032.81 Crore

 

The ED's action involves two principal categories of assets. The first is a shareholding valued at ₹2,026.65 crore in Sasan Power Ltd, Reliance Power's wholly owned subsidiary. The second comprises bank balances amounting to ₹6.16 crore.

 

Together, the assets are valued at ₹2,032.81 crore.

 

The seizure order was issued under Section 37A(1) of FEMA in connection with an alleged contravention of foreign exchange regulations. The provision allows authorities to take action in specified circumstances involving assets held in India in connection with alleged overseas foreign exchange violations.

 

The company has said the order is provisional and subject to confirmation by the competent authority. It should therefore not be interpreted as a final determination of liability or proof that the alleged violation has been established.

 

What Reliance Power Said in Its Exchange Filing

 

In its regulatory disclosure, Reliance Power said the ED's action relates to Foreign Currency Convertible Bonds (FCCBs) issued in 2006 and overseas investments made in 2008 through a Singapore-based subsidiary.

 

The company maintained that the transactions had received the necessary approvals. It also said the attachment primarily concerns shares in Sasan Power Ltd that have been pledged as security in favour of Power Finance Corporation for more than a decade.

 

Reliance Power has disputed the alleged contravention of FEMA and said it is assessing the implications of the order. The company has indicated that it will take appropriate steps to protect its interests and those of its shareholders and other stakeholders.

 

The company's position is important because the transactions under scrutiny date back nearly two decades. However, the legal outcome will depend on the proceedings and the findings of the competent authorities.

 

Why Are Sasan Power Shares Important in the ED Case?

 

Sasan Power Ltd is a wholly owned subsidiary of Reliance Power and operates in the power-generation sector. The shares covered by the ED order represent a significant asset of the parent company.

 

Reliance Power has stated that these shares were already pledged to Power Finance Corporation Ltd as security under arrangements that have been in place for more than 10 years.

 

The attachment may restrict the company's ability to transfer, sell or otherwise deal with the affected assets while the order remains in force. The existing pledge adds another dimension to the matter because the shares are already linked to a financing arrangement.

 

The ultimate financial and operational consequences will depend on the terms of the order, subsequent regulatory proceedings and any legal remedies pursued by Reliance Power.

 

Reliance Power Share Price: Stock Under Pressure

 

Reliance Power shares came into focus following the disclosure of the ED order. According to market reports published on October 14, the stock was trading around ₹19.90 during the session, while other reports recorded an intraday low of ₹19.74.

 

The stock has also experienced a significant decline over a longer period. Reports cited a fall of approximately 42% year to date and around 55% over the preceding year as of October 14, 2026.

 

These figures are time-sensitive and may vary depending on the precise trading cut-off and the reference closing price used. Investors should check the latest NSE or BSE quotes for the current price and returns.

 

The ED order is an additional development for shareholders to assess, but a stock's movement cannot be attributed to a single event without considering broader market conditions, company fundamentals, trading volumes and other relevant factors.

 

What Does the ED Order Mean for Reliance Power Investors?

 

The order raises several issues that investors may monitor in the coming days.

 

Regulatory uncertainty: The company will need to respond to the proceedings and contest the allegations through the applicable legal process.

 

Asset restrictions: The affected Sasan Power shares and bank balances may be subject to restrictions under the order, potentially limiting how the company can deal with them while the proceedings continue.

 

Financing considerations: Because the Sasan Power shares were already pledged to Power Finance Corporation, investors will be watching for any clarification about the interaction between the attachment and existing security arrangements.

 

Stock volatility: Regulatory developments can influence investor sentiment and short-term trading. However, the direction and extent of any price movement cannot be predicted with certainty.

 

The company has disputed the allegations, and the provisional nature of the order is an important qualification. Investors should distinguish between the ED's action, the company's response and any final decision by the competent authority.

 

What Is FEMA Section 37A(1)?

 

The Foreign Exchange Management Act, 1999, provides India's legal framework for foreign exchange transactions and related regulatory matters.

 

Section 37A addresses circumstances in which the authorised authority has reason to believe that foreign exchange held outside India in contravention of Section 4 of FEMA may be linked to assets in India. Subject to the statutory conditions, the authority can issue an order for seizure of assets in India equivalent to the value involved.

 

Such an order is subject to the confirmation process prescribed under the law. The issuance of an order does not, by itself, establish that every allegation has been finally proven.

 

In Reliance Power's case, the company says the matter concerns FCCBs issued in 2006 and overseas investments made in 2008, and maintains that the required approvals were obtained.

 

Reliance Power ED Case: What Happens Next?

 

The next developments are likely to centre on the confirmation process, the company's response and any further disclosures made to stock exchanges.

 

Reliance Power has disputed the alleged FEMA violation and is assessing the implications of the order. Investors will be watching for updates on the affected assets, the company's legal position and any material developments in the proceedings.

 

The case also highlights the importance of regulatory disclosures for listed companies, particularly when an order affects significant assets or creates uncertainty around existing financing arrangements.

 

For now, the ED's action represents a substantial regulatory development for Reliance Power, but the final outcome remains subject to the applicable legal process.

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