Reliance Power shares cracked over 10% to their day’s low of Rs 43.55 per share, while Reliance Infrastructure shares were down 4.5% at Rs 231 per share.
Pal was remanded for two days in custody and will be procured before the court today. Arrested on Friday night, Pal was questioned for several hours.
The Enforcement Directorate (ED) is investigating alleged financial irregularities and potential violations under the Prevention of Money Laundering Act (PMLA).
This comes after a large-scale ED operation on July 24, during which 35 premises, 50 companies and over 25 individuals linked to Reliance Anil Ambani Group (RAAGA) firms were searched.
The probe follows a money laundering case registered based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI).The role of Yes Bank, including its then-promoter, is also under scrutiny. The ED suspects the illegal diversion of around Rs 3,000 crore in loans disbursed by Yes Bank between 2017 and 2019.The investigation is reportedly based on inputs from multiple regulatory and financial bodies, including the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and the Bank of Baroda. Investigators said Pal played a crucial role in the diversion of funds from the company and in the submission of a bogus bank guarantee (BG) worth over Rs 68 crore to the Solar Energy Corporation of India (SECI), with the intention to cheat the PSU.
According to officials, a board resolution had empowered Mr. Pal and others to finalise, approve, sign, and execute all documents related to SECI’s Battery Energy Storage System (BESS) tender and to use RPL’s financial capability for the bid.
On Friday, shares of Reliance Power gained as much as 15% to their day’s high of Rs 50.75 on the NSE on Friday, October 10, amid renewed buying interest and strong volumes. Data showed that around 7 crore equity shares of the company changed hands, compared to its one-week and one-month average trading volumes of 2 crore shares each.
At about 10:10 am, shares of the company were trading at Rs 46.20, lower by 5% from the last close on the NSE. Reliance Infra was down 2% at Rs 238 per share.
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