Reliance Power issues BIG statement after CFO's arrest: 'Wish to clarify that Anil Ambani...'

Reliance Power on Saturday issued a statement following the arrest of its executive director and chief financial officer (CFO) Ashok Kumar Pal. In the statement, the company -- part of the Reliance Group -- said that Anil Ambani had not been on its Board for more than three years and that he was "not concerned with this matter in any manner." Reliance Power further said it would take appropriate steps in the case "as legally advised." Pal was arrested by the Enforcement Directorate (ED) on Friday night in connection with a bank loan fraud case.

What did Reliance Power say on Pal's arrest?

The ED on Friday arrested Pal, who is said to be a close aide of Reliance Group chairman Anil Ambani. Pal is accused of playing a key role in a fake bank guarantee case and has been held under provisions of the Prevention of Money Laundering Act (PMLA). In its statement on Saturday, Reliance Power said that Pal had quit as the company's executive director and CFO with immediate effect. The firm also denied allegations of fraud and said it was a "victim." Its statement read: "The Company and its subsidiaries acted bonafidely and are a victim of fraud, forgery and cheating conspiracy (sic)."

What is the ED's case against Reliance Group?

In July, the ED starting conducting searches at dozens of locations across Mumbai and Delhi as part of a money laundering investigation involving the Reliance Group. The agency says that Pal had a crucial role in submitting bogus bank guarantee of more than Rs 68 crore with an intention to cheat. A special court has given ED two days' custody of Pal, after which he will again be produced before a designated court on Monday.