Reliance Power ED seizure of ₹2,026.65 cr (2026)

What Reliance Power disclosed to exchanges

Reliance Power Limited told stock exchanges that the Enforcement Directorate (ED) has seized assets linked to its wholly owned subsidiary, Sasan Power Limited. The seizure covers shares of Sasan Power valued at ₹2,026.65 crore and bank balances of ₹6.16 crore. The company said the action is based on an ED order dated October 12, 2026.

The disclosure matters because it places formal restrictions on dealing in a key subsidiary’s shares and specified bank balances while the legal process continues. Reliance Power also flagged that the seized shares are already pledged to a Government of India undertaking, which adds a layer of complexity to how the restraint plays out.

The FEMA legal provision used by ED

Reliance Power said the seizure order was issued under Section 37A(1) of the Foreign Exchange Management Act (FEMA). The order referenced in the disclosure is titled Order of Seizure No. AD/HIU-2(4)(3)/2026/37(A)/01.

According to the company’s filing, ED has cited an alleged contravention of Section 4 of the Foreign Exchange Management Act, 1999. The company did not disclose any penalty being imposed at this stage. Instead, the action is described as a restraint on dealing with the assets pending further steps under the law.

FCCB issuance in 2006 and overseas investment in 2008

Reliance Power linked the current FEMA action to ED’s investigation into foreign currency convertible bonds (FCCBs) issued by the company in 2006. The filing also refers to a subsequent overseas investment made in 2008 in a Singapore subsidiary.

These two events, as described by the company, form the basis for the regulatory examination that has now resulted in the seizure order. Beyond identifying the FCCB issuance and the overseas investment, the disclosure does not provide additional transaction details.

What exactly has been seized

The company stated that ED has seized:

• Shares of Sasan Power Limited, valued at ₹2,026.65 crore
• Bank balances of ₹6.16 crore

The seizure imposes a restraint on the transfer, sale, pledge, encumbrance, or other dealing with the identified assets. Reliance Power’s disclosure also clarifies that no penalty has been imposed at this stage, indicating that the matter is still in a procedural phase.

A key complication: Sasan Power shares are already pledged

Reliance Power’s filing emphasises that the seized Sasan Power shares are already pledged in favour of Power Finance Corporation Limited (PFC). PFC is described as a Government of India undertaking.

The company said this security arrangement has been in place for more than 10 years. This detail is central because the ED restraint applies to assets that, per the disclosure, are already encumbered. The filing does not state whether the pledge terms change because of the seizure, only that restrictions on further dealing apply.

Company response and next procedural step

Reliance Power said the seizure is provisional and subject to confirmation by the Competent Authority under Section 37A of the Act. The company said it is assessing the implications of the order.

This framing indicates that the process is not complete with the initial seizure order and that confirmation is a necessary step before the action becomes final under the relevant provision.

Separate ED action in July 2026 under PMLA

The broader context in the material provided includes a separate ED action under the Prevention of Money Laundering Act (PMLA). Reliance Power disclosed that it received Provisional Attachment Order No. 33/2026 dated July 10, 2026, and that it received the order on July 11, 2026.

This PMLA attachment related to alleged violations during 2017 to 2019. The total provisional attachment linked to Reliance Power and its promoter group was stated to be about ₹1,021.19 crore. The company also said it would take appropriate legal steps to safeguard its interests and those of shareholders and stakeholders.

What the July attachment covered: promoter shares and receivables

The July 2026 attachment included equity shares of Reliance Power held by promoter entity Reliance Infrastructure Limited valued at ₹762.75 crore. The text provided notes that this component is a promoter-level asset and not something on Reliance Power’s own balance sheet.

The order also covered receivables connected to group entities: ₹116.96 crore from Sasan Power and ₹141.48 crore from Reliance Cleangen (RCL). Together, these receivables total ₹258.44 crore. The material also notes that PMLA attachment is a temporary freeze on assets for up to 180 days and must be confirmed by an Adjudicating Authority to become permanent.

Key facts at a glance

Market and stakeholder implications from the disclosures

From the FEMA seizure disclosure, the immediate operational impact is not quantified by Reliance Power, but the restraint on transfer or dealing can affect flexibility around the pledged Sasan Power shares and the specified bank balances. The company’s filing also signals that the matter is still subject to confirmation by the Competent Authority.

From the PMLA-related disclosures in July, the attachment of promoter-held shares can constrain the promoter entity’s ability to use those shares for fundraising or restructuring. And the attachment covering receivables of ₹116.96 crore from Sasan Power and ₹141.48 crore from Reliance Cleangen highlights that specific cash flow-linked items are included in the order’s scope.

Why the two actions are being read together

The material provided places the October FEMA seizure alongside the earlier July PMLA attachment, showing multiple enforcement tracks affecting Reliance Power or entities linked to it. It also cites cumulative PMLA attachments across various Reliance Anil Ambani Group cases at ₹20,367 crore, along with a further ₹77.86 crore attached under FEMA.

For investors tracking regulatory risk, the key distinction highlighted in the text is that some attached assets are promoter-level holdings, while other components relate to company receivables and subsidiary-linked assets.

Conclusion

Reliance Power has disclosed an ED seizure of Sasan Power shares worth ₹2,026.65 crore and bank balances of ₹6.16 crore under FEMA, tied to an FCCB-linked probe and an overseas investment referenced in the filing. The company said the action is provisional and subject to confirmation by the Competent Authority, and it is assessing implications. Separately, the July 2026 PMLA provisional attachment order covering ₹1,021.19 crore of assets remains a key part of the regulatory overhang described in the provided material.