Author: Aditya Pareek | EQMint | Market News
Shares of Reliance Power and Reliance Infrastructure—both part of Anil Ambani’s Reliance Group—came under pressure on Monday following media reports of fresh enforcement action by the Enforcement Directorate (ED) in a long-running money laundering probe involving the conglomerate.
Reliance Infra fell as much as 1.35%, while Reliance Power slipped nearly 3.7% from its day’s high, reflecting renewed investor caution after news agency PTI reported a fresh round of asset attachments by the ED.
ED Attaches Assets Worth ₹1,400 Crore in Ongoing Probe
According to the PTI report, the Enforcement Directorate has issued a new provisional attachment order seizing assets valued at over ₹1,400 crore. The action is the latest development in an investigation linked to Reliance Group chairman Anil Ambani and his related companies under the Prevention of Money Laundering Act (PMLA).
These newly attached properties are spread across multiple locations in India, official sources told PTI.
This follows a previous attachment of assets worth ₹7,500 crore, bringing the cumulative value of seized assets in the case to an estimated ₹9,000 crore.
The ED has been probing the group over financial transactions allegedly linked to irregularities and loan defaults. Details of the assets attached in the latest round were not immediately disclosed.
Reliance Group Response Awaited
As of the time of publication, the Reliance Group had not issued an official statement responding to the fresh allegations and asset seizure. Market participants said clarity from the company could help stabilise sentiment around the two stocks in the near term.
The ongoing case has been one of the key overhangs on Anil Ambani–led entities over the past several years, affecting investor confidence and share price performance.
Market Reaction: Stocks Volatile But Recovering
At 11:45 AM, the market reaction was mixed:
- Reliance Infrastructure was trading 1.63% lower at ₹174.50 per share on the BSE.
- Reliance Power, after falling from intraday highs, was trading 0.65% higher at ₹40.19 per share.
Analysts noted that Reliance Power’s marginal intraday recovery suggested traders were selectively buying on dips, although overall sentiment remained cautious due to regulatory developments.
Reliance Infra, which has a more leveraged balance sheet and faces operational challenges across its infrastructure and energy assets, saw greater downward pressure.
What the Fresh ED Action Means for Investors
Market analysts believe the latest asset attachment intensifies regulatory scrutiny on the group and may prolong uncertainty for investors.
Key concerns include:
- Possible impact on ongoing debt-restructuring plans
- Delays in asset monetisation initiatives
- Increased legal and compliance burden
- Weak sentiment across group companies
However, analysts also note that assets attached under PMLA do not directly affect day-to-day business operations unless the properties are operational units critical to revenue generation.
Wider Context: ED’s Multi-Year Probe Into the Group
The Enforcement Directorate’s investigation into Anil Ambani’s companies has been ongoing for several years. The case revolves around allegations relating to:
- Fund diversion
- Loan defaults
- Misuse of banking channels
- Financial irregularities
Previously attached assets worth ₹7,500 crore included real estate, land banks, and shareholdings in group entities. With the new attachments, the probe has expanded in scope.
Financial experts say that while legal processes may take time, periodic developments tend to cause short-term volatility in listed group entities.
Conclusion: Regulatory Pressure Continues to Weigh on Reliance Group Stocks
The latest round of ED action has once again cast a shadow over Anil Ambani’s Reliance Power and Reliance Infrastructure, triggering a decline in share prices and dampening market sentiment.
While both companies continue to operate their core businesses, the regulatory overhang and uncertainty regarding the ED case remain key risks for investors.
The market will now watch for an official response from the Reliance Group and further clarity from regulatory authorities.
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Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.
