Ed seizes ₹2K-cr Reliance Power assets in foreign exchange probe

The agency linked the action to ₹2,101.46 crore in write-offs and provisions related to overseas investments and advances to firms in BVI and Cayman Islands.

The Enforcement Directorate (ED) on Wednesday said it seized assets worth ₹2,032.81 crores in India belonging to Reliance Power Ltd (RPL) -- including the company’s shareholding in the Sasan power project-- in its foreign exchange management act (FEMA) probe against the company.

The seized assets include Reliance Power’s shareholding in the Sasan power project as well as bank balances, according to the ED. (PTI file photo)

The assets, ED said in a statement, have been seized under section 37 of FEMA and also includes bank balances of RPL. “These assets are equivalent in value to the foreign exchange held outside India in contravention of section 4 of FEMA,” it said.

ED’s probe in the matter is based on information from the Securities and Exchange Board of India (SEBI) pertaining to write-offs or provisions aggregating ₹2,101.46 crore made by RPL in its books of account. These write-offs, according to ED, were related to overseas investments and advances made to companies in the British Virgin Islands (BVI) and the Cayman Islands.

In a disclosure to stock exchanges, RPL said it “shall take all appropriate steps to safeguard its interest as well as the interests of all its shareholders and other stakeholders, as may be legally advised.”