New Delhi, Oct 14: The Enforcement Directorate (ED) has seized assets worth Rs 2,032.81 crore in India belonging to Reliance Power Ltd in connection with an ongoing investigation into alleged foreign exchange violations involving overseas investments and loans to entities in offshore jurisdictions.

The seizure was carried out under Section 37A of the Foreign Exchange Management Act (FEMA), 1999. According to the agency, the assets include bank balances of Reliance Power and its shareholding in Sasan Power Ltd. Their value is equivalent to the foreign exchange allegedly held outside India in contravention of Section 4 of FEMA.

The investigation was initiated following information received from the Securities and Exchange Board of India (SEBI) regarding write-offs and provisions totalling Rs 2,101.46 crore recorded by Reliance Power in its books. These related to overseas investments and advances made to companies in the British Virgin Islands (BVI) and the Cayman Islands, the ED said.

Also read:Odisha CM unveils major industrial push: ₹39,383 crore investment to create 42,512 jobs

The agency conducted searches under FEMA from March 6 to March 8 this year, during which it seized evidence and recorded statements of several persons. According to the ED, Reliance Natural Resources Ltd, which has since merged with Reliance Power, raised $275 million and invested the amount in its wholly owned Singapore subsidiary, Reliance Natural Resources (Singapore) Pte Ltd.

The Singapore subsidiary subsequently placed the funds on deposit with Deutsche Bank (Suisse) SA in Geneva. These deposits were used as collateral for loans extended to entities incorporated in the British Virgin Islands, the agency said. The investigation allegedly found that the BVI-based entities were controlled and managed from India by the Reliance Anil Ambani Group through front persons acting on the group's directions.

The ED further alleged that the loan proceeds were used for various purposes, including the temporary routing of funds back to India through foreign entities based in Mauritius. The funds were allegedly used for the group's benefit and parked outside India, it said.

According to the agency, the BVI entities failed to repay the loans extended by Deutsche Bank. It alleged that documents were subsequently fabricated to portray the transactions as genuine business advances made by Reliance Natural Resources (Singapore) and Indonesian subsidiaries of Reliance Power.

The ED said the documents were backdated and prepared to give the transactions the appearance of legitimate business dealings. The investigation remains ongoing, the agency said. (With ANI inputs)