Shares of Anil Ambani-led Reliance Power and Reliance Infrastructure witnessed a sharp jump in early trade after the Delhi High Court sought clarification from Union Bank of India in a case linked to Jai Anmol Ambani. Reliance Power share price has zoomed over 5% and is presently trading at Rs 36.38. Meanwhile, Reliance Infra share price hit an upper circuit on the second consecutive trading session after the stock closed at Rs. 150 yesterday gaining by 5 percent.
The High Court, while hearing a plea challenging the bank’s decision to declare a loan account as fraudulent, directed Union Bank to explain whether it had issued a show-cause notice to Jai Anmol Ambani before taking the action. Justice Jyoti Singh observed that borrowers must be given an opportunity to respond and made it clear that the Court was not granting a clean chit but was only examining whether due process was followed. The matter will be taken up again on December 19.The Court’s observations were in line with the Supreme Court ruling in State Bank of India v Rajesh Agarwal, which mandates prior notice and a hearing before classifying an account as fraud. Market participants appeared to react positively to the Court’s emphasis on procedural fairness, leading to a surge in ADA Group stocks, with Reliance Infrastructure hitting the upper circuit.
Reliance Power’s price movement was supported by gains over the last two consecutive days. Over the past week, Reliance Power has recorded an 8.62% return. However, the stock’s one-month performance shows a decline of 9.62%. Over three months, Reliance Power’s price has moved down by 24.28%. e. The stock has declined by 20.97% over the past year. Over a three-year horizon, Reliance Power has recorded a substantial gain of 133.73%, outperforming the Sensex’s 37.95% increase. The five-year performance is even more pronounced, with the stock rising by 943.22%, compared to the Sensex’s 80.45%. However, over a ten-year span, Reliance Power’s price has declined by 27.09%, while the Sensex has surged by 227.91%. Meanwhile, Reliance Infra hit a fresh 52-week low of ₹139.63 last week. Reliance Infrastructure have been facing selling pressure after Enforcement Directorate (ED) last week attached a total assets worth ₹10,000 crore as part of its ongoing money laundering probe against the companies of Reliance Group chairman.
The Enforcement Directorate (ED) earlier froze properties worth more than Rs 8,997 crore of the business group. Reliance Group companies have repeatedly said Ambani was not involved in the day-to-day management of the conglomerate. The industrialist has once been questioned by the ED as part of the money-laundering investigation linked to an alleged Rs 17,000-crore bank fraud against his group companies.