ED makes third arrest in Reliance Power fake bank guarantee case

A day after the Enforcement Directorate (ED) issued summons to industrialist Anil Ambani, a third arrest was 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).The ED has arrested Amar Nath Dutta in connection with its ongoing probe related to Reliance Power Ltd under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

On October 11, Ashok Kumar Pal, the then Chief Financial Officer (CFO) of Reliance Power Ltd, was arrested by the ED in connection with money laundering charges in the same case.

Pal’s arrest was followed by the arrest of his accomplice, Partha Sarthi Biswal, managing director of a shell company, Biswal Tradelink Pvt Ltd.

On Thursday, Dutta was arrested in connection with a money laundering investigation linked to the submission of forged bank guarantees of over Rs 68 crore, forged endorsements and fake "SFMS confirmations" by Reliance Power Ltd subsidiary to the Solar Energy Corporation of India Ltd (SECI).

Datta claimed to be providing consultancy services in trade financing, ED sources said. Dutta was produced before an Additional Sessions Judge, Patiala House courts, on Thursday and sent to four-day ED custody.

A Kolkata resident, Dutta played an active role along with Pal and Biswal in providing fake bank guarantees.

The ED had initiated investigation on the basis of three FIRs filed in this case including by the SECI with the Economic Offences Wing of the Delhi Police.

The SECI, a public sector undertaking under the Ministry of New and Renewable Energy, has suffered a loss of over Rs 100 crore due to fraudulent bank guarantee submission by the Reliance Power subsidiary.