Anil Ambani's Reliance Power and Reliance Infra Shares Crash After ED Action

Shares of  Anil Ambani's Reliance Power Limited and Reliance Infra tumbled nearly 5% on Tuesday, extending losses across multiple Anil Ambani-owned Reliance Anil Dhirubhai Ambani Group (Reliance ADAG), after the Enforcement Directorate (ED) initiated action in a money laundering investigation. Currently RPower is trading at 41 rupees per share. Meanwhile, Reliance Infra is trading at 194 rupees.

The Enforcement Directorate (ED) has attached more than 40 properties worth Rs 3,084 crore of Anil Ambani's group, including his residence at posh Pali Hill in Mumbai. Recently, RPower  CFO Ashok Pal was arrested. Less than two weeks ago, investigative portal Cobrapost alleged Anil Ambani's Reliance Group had committed a massive financial fraud exceeding Rs 41,921 crore through diversion of funds from group companies since 2006 - a charge the group denied as a malicious campaign by rival companies.

In August, the ED questioned Anil Ambani following raids on 35 premises linked to 50 companies and 25 individuals, including executives of his business group, conducted in Mumbai on 24 July.

Reliance Power and Reliance Infrastructure, part of the Anil Ambani group, later informed the stock exchanges, acknowledging the raids, but that they had "absolutely no impact" on their business operations, financial performance, shareholders, employees, or any other stakeholders. 

The probe, conducted on 24 July, came after the Central Bureau of Investigation (CBI) registered an FIR.

In September, the CBI filed a chargesheet against Anil Ambani and others related, citing fraudulent transactions between RCFL and RHFL, and Yes Bank. The charges also named firms belonging to former Yes Bank CEO, Rana Kapoor and his family, which led to a loss of ₹2,796 crore to the bank, PTI reported.