Delhi High Court Denies Bail to Ex-Reliance Power CFO in Money Laundering Case

In a significant ruling, the Delhi High Court has denied bail to Ashok Kumar Pal, the former CFO of Reliance Power Limited, in a money laundering case linked to a fraudulent bank guarantee of Rs 68 crore. The court found insufficient grounds to believe in Pal's innocence, emphasizing the serious nature of the allegations and the evidence presented by the Enforcement Directorate. This case highlights the ongoing scrutiny of financial practices within major corporations and the legal ramifications of alleged misconduct. As the trial approaches, the court's decision raises questions about corporate accountability and the enforcement of financial regulations.

By Narendra Chaudhary Jun 11, 2026, 15:45 IST

Court's Decision on Bail Application

New Delhi: The Delhi High Court has denied regular bail to Ashok Kumar Pal, the former Chief Financial Officer of Reliance Power Limited, in connection with a money laundering investigation involving a purported fake bank guarantee worth Rs 68 crore.

Justice Madhu Jain rejected Pal's bail request on Wednesday, indicating that there were insufficient grounds to justify his release in the case being examined by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act.

The court noted that, based on the allegations and evidence presented, it could not determine that there were reasonable grounds to believe Pal was innocent of the money laundering charges.

This case revolves around a bank guarantee of Rs 68.2 crore that was submitted to the Solar Energy Corporation of India Limited (SECI) on behalf of Reliance NU BESS Limited, a subsidiary of Reliance Power, which was later identified as 'fake'.

Justice Jain remarked that Pal's assertion of ignorance regarding the alleged forgery and his claim of acting solely in his official capacity would be evaluated during the trial when evidence is reviewed.

Pal contended that his complaint led to the filing of the initial FIR for the predicate offense and that he did not benefit from any proceeds of crime.

The court stated, 'Considering the nature of the allegations and the evidence provided by the Directorate of Enforcement, including statements recorded under Section 50 of the PMLA, as well as documentary and electronic evidence gathered during the investigation, this court cannot find reasonable grounds to believe that the applicant is not guilty of the alleged offense.'

The court concluded that the two conditions outlined in Section 45 of the PMLA for granting bail were not met at this time, thus denying Pal's request for regular bail.

Pal was taken into custody by the ED on October 10, 2025. The agency argued in court that, contrary to Pal's claims of limited involvement in the company's operations, the evidence indicated his significant and active participation in the agreements and communications under scrutiny.

Pal served as the Chief Financial Officer of Reliance Power Limited from January 29, 2023, until October 11, 2025, and was also an authorized signatory for Reliance NU BESS Limited.

The money laundering allegations originated from a November 2024 FIR filed by the Economic Offences Wing (EOW) of the Delhi Police, which claimed that the company was involved in issuing 'fake' bank guarantees for an 8 percent commission.

Reliance Power has previously stated that it was a 'victim of fraud, forgery, and a cheating conspiracy' in this matter and had made the necessary disclosures to the stock exchange on November 7, 2024.