Reliance Power share price falls 12% YTD, Reliance Infra down 47%; what you need to know today

"RCOM has been undergoing the Corporate Insolvency Resolution Process (CIRP) for over six years. All matters relating to its resolution are currently sub judice before the Hon’ble National Company Law Tribunal (NCLT) and the Hon’ble Supreme Court of India," the press release added.

Reliance Communications is presently managed by a resolution professional under the supervision of the NCLT/Committee of Creditors (CoC), led by the State Bank of India (SBI) and a consortium of banks/lenders, it said.

"Mr Anil D. Ambani is in no way involved with Reliance Communications and resigned six years ago in 2019," the company added.

The press release added that the attachment order has no material impact on the operations, performance, or future prospects of Reliance Infrastructure and Reliance Power. "Both the companies continue to operate as usual, maintaining their focus on growth, operational excellence, and their commitment to all stakeholders, especially the over 50 lakh strong shareholder family," it said.

Anil D. Ambani has also not served on the Board of Directors of either Reliance Infrastructure or Reliance Power for over three and a half years.

What happened on Thursday, November 20?

The Enforcement Directorate on Thursday said it has attached fresh assets worth more than ₹1,452 crore as part of a money laundering investigation against businessman Anil Ambani's Reliance Group company RCOM.

A provisional order has been issued under the Prevention of Money Laundering Act (PMLA) to attach multiple buildings located in the Dhirubhai Ambani Knowledge City (DAKC) and Millennium Business Park, Navi Mumbai, as well as plots and buildings situated in Pune, Chennai and Bhubaneswar, the ED said in a statement.

These properties are worth ₹1,452.51 crore and belong to RCOM, according to the federal agency.

The ED had earlier attached properties worth ₹7,500 crore in this case related to alleged bank loan fraud and other financial irregularities.

With the latest order, the total attachment in money laundering cases against the Reliance Group stands at ₹8,997 crore.

The ED alleged RCOM and its group companies availed loans from domestic and foreign lenders from 2010-2012 onwards, of which a total amount of ₹40,185 crore was outstanding.

"Nine banks have declared the loan accounts of the Group as fraud. The loans taken by one entity from one bank were utilised for repayment of loans taken by other entities from other banks, transfer to related parties, and investments in mutual funds, which was in contravention to the terms and conditions of the sanction letter of the loans," the agency claimed.

RCOM and its group companies "diverted" over ₹13,600 crore for "evergreening" of loans, over ₹12,600 crore was "diverted" to connected parties, and over ₹1,800 crore was "invested" in fixed deposits and mutual funds, etc., which were substantially liquidated for re-routing to group entities, the ED probe found.

The ED has alleged "huge misuse of bill discounting for the purpose of funnelling funds to connected parties". "Certain loans were siphoned off outside India through foreign outward remittances," it added.

Ambani has once been questioned by the ED in this case in August, even as the agency has summoned him afresh in a foreign exchange violation case.

Reliance Power board approves formation of Board of Management

Reliance Power on Wednesday, November 19, said its board has approved forming a Board of Management (BOM) for adopting governance practices that support long-term value creation for all stakeholders.

The BOM comprises the CEO, key managerial personnel, and senior business leaders of the company, Reliance Power said in an exchange filing.

"The creation of the BOM represents a step in pursuit of stronger governance, sharper oversight mechanisms and building a more agile and future-ready organisation," the company said.

How shares have fared

Both Reliance Power and Reliance Infra shares have fallen on a year-to-date (YTD) basis. Data show that Reliance Power has slipped 12% on the NSE, while Reliance Infrastructure shares have declined nearly 47% during the period.