A Day After Summoning Anil Ambani, ED Makes Third Arrest In Fake Bank Guarantee

A day after the Enforcement Directorate (ED) issued a summons to industrialist Anil Ambani, a third arrest has been made in the money laundering case revolving around a fake bank guarantee that allegedly

caused a loss of over Rs 100 crore to the Solar Energy Corporation of India (SECI).On Friday, the ED in a statement said Amar Nath Dutta has been arrested in the bogus bank guarantee case linked to Reliance NU BESS Ltd.This week, the federal agency also attached immovable assets of Anil Ambani group of companies worth Rs 7500 crores.Dutta's arrest follows earlier arrests of Ashok Pal and Partha Sarathi Biswal. A court has granted the ED four days of custody for Dutta.

What Is Fake Bank Guarantee Case? How Is It Different From Bank Fraud Case?

The ED's money laundering case stems from a criminal case registered by the Delhi Police’s Economic Offences Wing (EOW) last year under sections of cheating and forgery.This original case specifically deals with the submission of a fake bank guarantee to the SECI.After conducting searches at Anil Ambani Group of Companies in July, the anti-money laundering agency subsequently raided four locations in Bhubaneswar and Kolkata, including those linked to Biswal Tradelink Private Ltd and its directors.

Modus Operandi Of The Scheme

The investigation revealed the alleged details of the fraud which have been disputed by Reliance Power.Fake Bank Guarantees: M/s Biswal Tradelink Pvt. Ltd. (an Odisha-based entity), its directors, and associates were allegedly engaged in issuing fake Bank Guarantees (BGs) for a commission of 8%.Preliminary investigation also suggests the group facilitated fake bills for a commission.

Biswal Tradelink Private Link A Shell Company

During raids, the ED found Biswal Tradelink to be a fake entity or a shell company.Concealment: The probe agency noted that key individuals in the group were using the Telegram application with the “disappearing messages” feature enabled, indicating attempts to conceal communication.Forged Documents: A fake bank guarantee of ₹68.2 crore was submitted to SECI on behalf of M/s Reliance NU BESS Limited/M/s Maharashtra Energy Generation Limited. Spoofed Email Domain: To make the fake BG appear genuine, the group used a spoofed email domain. Instead of the legitimate sbi.co.in, the domain s-bi.co.in was allegedly deployed to send forged communication to SECI, impersonating the State Bank of India (SBI). Seizures: The ED claimed it has seized undisclosed bank accounts and evidence of suspicious transactions running into crores

Role of Ashok Pal

Ashok Kumar Pal, the former Chief Financial Officer (CFO) of Reliance Power Limited (RPL) was the first big arrest in the case. He resigned shortly after his arrest. The ED stated that Pal played a crucial role in the scheme:Diversion of Funds: According to the ED, he was crucial in the diversion of funds from RPL, a listed company where the public holds over 75% of the shares.Authorised Role: A board resolution reportedly empowered him (among others) to finalize, approve, sign, and execute all documents for SECI’s BESS tender and to use RPL’s financial capability for the bid.Concealment and Planning: He is accused of playing a key role in the planning, supervision, funding, and concealment of the forged bank guarantee scheme used in the SECI tender, intending to cheat the Public Sector Undertaking (PSU).In a statement issued after Pal's arrest in October, Reliance Power denied all charges. The company claimed it was a "victim" in the matter and had filed complaints with the Delhi Police.Reliance Power sought to distance industrialist Anil Ambani from the controversy, stating: "We also wish to clarify on the media reports that Mr. Anil D. Ambani is not on the Board of Reliance Power Limited for more than 3.5 years and is not concerned with this matter in any any manner."