Reliance Power Shares Crash 5% as ED Seizes Rs 2,033 Crore Assets in FEMA Case Against Anil Ambani Firm: What's Next?

Reliance Power is part of the Anil Ambani group, and its shares have been under pressure all year. The seizure by the Enforcement Directorate announced on 14 October was the latest in a series of enforcement actions involving the group, and Reliance Power stock fell for a second session on 15 October.

This guide explains what the ED alleges, what was seized, how the company has responded, what the process looks like from here and what investors should weigh. Some reports give the sum as Rs 2,027 crore and others as Rs 2,032 crore, and I explain the difference.

The allegations are the ED's and have not been proven, and the company disputes them.

Click Here – Get Free Investment Predictions

Reliance Power Shares: The Move After the ED Action

Item	Level	Note
Close on 14 Oct	Rs 19.82	Down 1.05% from Rs 20.03
Low on 15 Oct	Rs 19.05	A new 52-week low; about 3.9% below the 14 Oct close (my calculation)
Fall from Rs 20.03	About 4.9%	My calculation; the headline says 5% and one report says 4%
Two session fall	4.39%	One market data report
52-week high	Rs 47.68	The low is about 60% below it
Year to date	Down about 42%	Down 55% to 57% over one year
Moving averages	Below all	5, 20, 50, 100 and 200-day

The Reliance Power fall on 15 October came as the Sensex rose about 1.1%, so the stock underperformed a rising market. Institutional holding in Reliance Power dropped 0.82% last quarter to 16.44%, which shows that large investors were already reducing exposure.

Risk: A stock at a 52-week low under a legal cloud can fall further on any new adverse news.

Screen power sector stocks on the Univest Screener

What the ED Seized and Why

Item	Detail
Total value	Rs 2,032.81 crore
Sasan Power shares	Rs 2,026.65 crore, in a wholly owned subsidiary
Bank balances	Rs 6.16 crore
Law	Section 4 of FEMA, 1999; seizure under Section 37A
Nature of order	Provisional; must be confirmed by the competent authority
Restriction	Reliance Power cannot sell, transfer, pledge or encumber the assets while it applies
Why two figures	Rs 2,026.65 crore plus Rs 6.16 crore makes Rs 2,032.81 crore; reports of Rs 2,027 crore round the shares alone (my reading)

The ED says the seized assets match the value of foreign exchange allegedly held abroad in breach of Section 4 of FEMA. Section 37A allows the agency to seize assets of equivalent value in India when the foreign asset cannot be reached.

The searches at Reliance Power that led to this order were carried out from 6 to 8 March 2026, when the ED seized documents and recorded statements.

Risk: A provisional order can be confirmed, modified or set aside, and the outcome is not known.

The Allegations: How the ED Says the Money Moved

Step	Allegation
2006	Reliance Natural Resources Ltd (RNRL), later merged into Reliance Power, raised 300 million dollars through foreign currency convertible bonds
Transfer	275 million dollars went to its Singapore subsidiary, RNRL-S
Collateral	RNRL-S placed funds with Deutsche Bank (Suisse) SA in Geneva, used as collateral for loans to British Virgin Islands entities
Control	The ED says the BVI entities were run from India by the group through front persons, and did not repay the loans
Round tripping	Part of the loan money allegedly came back to India through Mauritius entities
Documents	The ED alleges backdated documents were created to show genuine business advances
Trigger	SEBI flagged write offs and provisions of Rs 2,101.46 crore tied to overseas investments and advances

These are allegations from the ED's statement as reported. The company says the investment was made with the necessary approvals and that the matter concerns FCCBs raised in 2006 and an overseas investment made in 2008.

Risk: A long running case with several parties can take years to resolve, and the stock may stay under pressure meanwhile.

Download the Univest iOS App or Univest Android App to track Reliance Power and set price alerts.

Reliance Power's Response and the Sasan Power Pledge

Point	Detail
Company stance	Contests the allegations and says the overseas investment had approvals
Penalty	The company says no penalty has been imposed
Pledge	The seized Sasan Power shares were pledged to Power Finance Corporation under security arrangements for over 10 years
Next step	The company says it is reviewing the implications and will protect its interests

The Reliance Power pledge to Power Finance Corporation is important. The seized shares are already security for a lender, so a conflict between the ED restriction and the lender's rights could arise. I could not find how that will be resolved, so I do not predict it.

Sasan Power is a key operating asset of Reliance Power, so any restriction on it matters for the group's financial flexibility.

Risk: A restriction on a key subsidiary's shares can limit Reliance Power's ability to raise money or sell assets.

Reliance Power Financial Picture

Metric	Detail
Debt to EBITDA	6.27 times
Average return on equity	0.06%
Return on capital employed	5.3%
Non-operating income	127.17% of pre-tax profit
Operating margin	Fell to 28.75%
Valuation	Enterprise value to capital employed of 0.7
Institutional holding	16.44%, down 0.82% in the last quarter

Reliance Power profit has risen sharply over a year according to one report, but non-operating income is larger than pre-tax profit, so the earnings quality is weak. A low valuation reflects these risks and the legal overhang, so a low valuation alone is not a reason to buy.

Risk: High debt and weak returns leave the company exposed if funding conditions tighten.

What's Next for Reliance Power Shares

1. Confirmation or reversal of the provisional order by the competent authority
2. How the pledge to Power Finance Corporation interacts with the order
3. Any appeal or legal challenge by Reliance Power
4. Further ED or other agency action against the group
5. The next quarterly results and any disclosure about the case

Conclusion

Reliance Power shares fell to a 52-week low after the ED seized Rs 2,032.81 crore of assets under FEMA. The allegations are unproven and disputed, the order needs confirmation, and the stock carries high debt and legal risk, so weigh these before acting.

Frequently Asked Questions

Why did Reliance Power shares fall 5%?

Ans. The stock fell to a 52-week low of Rs 19.05 on 15 October 2026 after the ED provisionally seized assets worth Rs 2,032.81 crore under FEMA. It was down about 4.9% from the 14 October level of Rs 20.03 (my calculation).

What did the ED seize?

Ans. Sasan Power shares worth Rs 2,026.65 crore and bank balances of Rs 6.16 crore, a total of Rs 2,032.81 crore.

What does the ED allege?

Ans. That funds raised abroad through FCCBs in 2006 were routed through foreign entities, used as collateral for loans to BVI companies and allegedly brought back through Mauritius, supported by backdated documents.

What does Reliance Power say?

Ans. It contests the allegations, says the overseas investment was made with approvals and notes that no penalty has been imposed.

Is the seizure final?

Ans. No. It is a provisional order that must be confirmed by the competent authority.

Why is the Sasan Power pledge important?

Ans. The shares were pledged to Power Finance Corporation for over 10 years, so the ED restriction and the lender's security overlap.

Is Reliance Power undervalued?

Ans. Valuation measures look low, but debt to EBITDA is 6.27 times, returns are weak and earnings depend on non-operating income, so a low multiple is not a reason on its own.

Is this article investment advice?

Ans. No. It is educational and not a recommendation to buy or sell.