Reliance Power discloses an ED seizure of Sasan Power shares and bank balances under FEMA, which it disputes

Reliance Power Limited has told the exchanges that it received an Order of Seizure dated 12 Oct 2026 from the Enforcement Directorate (ED) under Section 37A(1) of the Foreign Exchange Management Act (FEMA). The order seizes shares of its wholly owned subsidiary, Sasan Power Limited, for ₹2,026.65 crore, and the company's bank balances of ₹6.16 crore.

The company says the order relates to foreign currency convertible bonds issued in 2006 and a related overseas investment in a Singapore subsidiary made in 2008, with all applicable approvals. It says the Sasan Power shares have been pledged to Power Finance Corporation, a Government of India undertaking, under security arrangements for more than 10 years.

The filing describes the seizure as provisional and subject to confirmation by the Competent Authority under Section 37A. The alleged contravention is of Section 4 of FEMA, which the company disputes. The order restrains transfer, sale, pledge or other dealing with the seized assets, and no penalty has been imposed. The company is assessing the implications and says it will take all appropriate steps to protect the interests of its shareholders and other stakeholders.

Inference

For shareholders, the order puts a restraint on the seized assets, which include the company's holding in Sasan Power, so the company cannot transfer or pledge them while the order stands. The company notes that the shares were already pledged to Power Finance Corporation.

The seizure is provisional, the company disputes the allegation, and the financial effect is still being assessed. The outcome depends on the Competent Authority's confirmation and any legal challenge, neither of which the filing describes. Investors may want to follow the company's later disclosures on both.