Reliance Power slides 5% as ED files chargesheet in fake guarantee case

Reliance Power shares fell 5 per cent after ED said it has filed a supplementary prosecution complaint against the company and its subsidiaries

Shares of Reliance Power Ltd. fell over 5 per cent on Monday after the Enforcement Directorate (ED) said it has filed a supplementary prosecution complaint against the company and its subsidiaries.

 

The company's stock fell as much as 5.18 per cent during the day to ₹35.7 per share, the biggest intraday fall since November 24 this year. The stock pared losses to trade 4.7 per cent lower at ₹35.9 apiece, compared to a 0.47 per cent advance in Nifty 50 as of 11:53 AM. 

 

Shares of the company fell for the seventh straight session on Monday. The counter has fallen 16 per cent this year, compared to a 10.5 per cent advance in the benchmark Nifty 50. Reliance Power has a total market capitalisation of ₹14,835.01 crore. 

Reliance Power files supplementary prosecution complaint

The company said that ED has filed a supplementary prosecution complaint against the company, its subsidiaries -- Reliance NU BESS Ltd. and Rosa Power Supply Company Ltd. -- and several individuals in connection with the SECI bank guarantee case.

 

The company clarified that it has already lodged a criminal complaint in the matter. Reliance NU BESS had filed a complaint with the Economic Offences Wing of the Delhi Police on October 16, 2024, against third parties who arranged the disputed bank guarantee. An FIR was subsequently registered on November 11, 2024, against those parties.

 

Reliance Power reiterated that it and its subsidiaries acted "bona fide" and are victims of fraud, forgery, cheating and conspiracy by external parties. It added that the ED’s allegations have not yet undergone judicial scrutiny and that the company has not been found guilty of any wrongdoing.

 

The firm said it will get an opportunity to present its case before the court and that the filing of the complaint does not impact its operations. The company said it will take all legally advised steps to safeguard its interests and those of stakeholders.

 

Reliance Power emphasised that its operations remain normal and that it continues to focus on growth, operational excellence and long-term value creation for its more than 43 lakh shareholders.

 

Last month, Reliance Power’s board approved the creation of a Board of Management (BOM) to strengthen governance and enhance strategic business oversight. The new body will comprise the chief executive officer, key managerial personnel and other senior business leaders.

Reliance Power Q2 results

The company reported a net profit of ₹87 crore for the quarter ended September 30, supported by an increase in revenues. It had reported a loss of ₹352 crore in the second quarter of FY25.

 

The company saw its total income grow to ₹2,067 crore during the quarter, up from ₹1,963 crore in the year-ago period. Reliance Power, part of the Reliance Group, has an operating portfolio of 5,305 megawatts, which includes 3,960 megawatts from Sasan Power Ltd.