ED Order of Seizure under FEMA: subsidiary shares, bank balances; provisional, company disputes allegations
ED Order of Seizure received by the company.
By ScoutQuest · · 2 min read
- Seized Shares Value
- Shares held in Sasan Power Limited, a wholly owned subsidiary, seized for Rs. 2026.65 crore
- Bank Balances Seized
- Bank balances of the company: Rs. 6.16 crore
- Order Status
- Seizure is provisional, subject to confirmation by the Competent Authority; no penalty imposed
What the company disclosed
Reliance Power Limited has disclosed a communication received from the Enforcement Directorate (ED) - an Order of Seizure dated October 12, 2026, issued under Section 37A(1) of the Foreign Exchange Management Act, 1999 (FEMA). The company said it received the order on October 12, 2026.
What the order covers
- Shares held by the company in Sasan Power Limited, its wholly owned subsidiary, seized for an amount of Rs. 2026.65 crore
- Bank balances of the company amounting to Rs. 6.16 crore
Background the company gave
- The order relates to foreign currency convertible bonds issued in 2006, described in the update as 20 years ago, and the related overseas investment made in 2008, described as 18 years ago, in a subsidiary in Singapore, with all applicable approvals
- The shares of Sasan Power Limited are already pledged in favour of Power Finance Corporation Limited (a Government of India undertaking) under security arrangements for more than 10 years
How the company describes the status
- The seizure is provisional and subject to confirmation by the Competent Authority under Section 37A of the Act
- The company is assessing the implications
- The authority has cited alleged contravention of Section 4 of the Foreign Exchange Management Act, 1999; the company disputes the allegations
- No penalty has been imposed
What the order restrains
- Transfer, sale, pledge, encumbrance or otherwise dealing with the seized assets
What the company said it will do
- Take all appropriate steps to safeguard its interest as well as the interests of all its shareholders and other stakeholders, as may be legally advised
How this can be read
A communication of this kind can carry a cautious perception, and the key points to weigh are factual: the order concerns shares of Sasan Power Limited valued at Rs. 2026.65 crore and bank balances of Rs. 6.16 crore; the seizure is stated to be provisional and subject to confirmation by the Competent Authority under Section 37A of the Act; the authority has alleged contravention of Section 4 of FEMA, which the company says it disputes; and no penalty has been imposed. The update also states that the Sasan Power shares were already pledged in favour of Power Finance Corporation Limited under security arrangements for more than 10 years, and that the company is assessing the implications.
Also from Reliance Power
Half yearly statement of debt securities as on September 30, 2026: 8.00% NCD, Rs. 250.00 crore outstanding
13 Oct 2026
Company named as accused in CBI's second chargesheet in Reliance Home Finance matter
1 Oct 2026
More numbers
- Value of Sasan Power Limited shares seizedRs. 2026.65 crore
- Bank balances of the company seizedRs. 6.16 crore
- Period Sasan shares already pledged under security arrangementsmore than 10 years
- Time since foreign currency convertible bonds were issued20 years ago
- Time since related overseas investment in Singapore subsidiary18 years ago
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