Reliance Power: ED Seizes ₹20.32 Cr Shares & Bank Balances

Reliance Power Limited has disclosed the receipt of an Order of Seizure from the Enforcement Directorate (ED) under Section 37A(1) of FEMA. The order pertains to alleged contravention of Section 4 of FEMA, 1999, relating to foreign currency convertible bonds issued in 2006 and overseas investments made in 2008. The ED has seized shares of its wholly-owned subsidiary, Sasan Power Limited, valued at ₹2026.65 crore (₹20.26 Billion), and company bank balances amounting to ₹6.16 crore. The company disputes the allegations and notes that the shares are already pledged to Power Finance Corporation. The seizure is provisional and subject to confirmation, with the company assessing the financial implications and planning to safeguard stakeholder interests.