The Delhi High Court has declined to grant bail to Ashok Kumar Pal, former Chief Financial Officer of Reliance Power Limited, in a money laundering case linked to an alleged forged bank guarantee worth ₹68.2 crore submitted for a major renewable energy tender.
In its order, the Court observed that while the evidence gathered by the Enforcement Directorate (ED) will ultimately be tested during trial, it cannot be brushed aside at the bail stage. The Court noted that the investigation record includes witness statements, documentary evidence and electronic communications that, at present, do not justify a finding that Pal is unlikely to have committed the alleged offence.
The bench further held that the stringent bail requirements under the Prevention of Money Laundering Act (PMLA) had not been met, making it difficult to grant relief at this stage of the proceedings.
The case stems from a tender issued by the Solar Energy Corporation of India (SECI) in June 2024 for the development of a 1,000-megawatt Battery Energy Storage System (BESS) project. To participate in the bidding process, Reliance Power entered into an arrangement with Biswal Tradelink for the procurement of a bank guarantee.
A few months later, SECI issued a show-cause notice stating that the bank guarantee submitted for the tender process was found to be fraudulent. Following the development, SECI barred Reliance Power and its subsidiary, Reliance NU BESS Limited, from participating in its tenders for three years. That debarment was subsequently stayed by the High Court in November 2024.
Pal had earlier approached the Economic Offences Wing with a complaint against Biswal Tradelink, leading to the registration of an FIR. The matter later attracted the attention of the ED, which launched a money laundering investigation under the PMLA. During the probe, Pal was named in a supplementary prosecution complaint and was arrested in October 2025.
Arguing for bail, Pal’s legal team highlighted that he has spent more than eight months in custody and pointed to constitutional protections of personal liberty. It was also contended that the trial has yet to begin and is unlikely to conclude anytime soon, given the extensive evidence on record and the large number of witnesses expected to testify.
The ED opposed the plea, maintaining that the allegations and material collected during the investigation warranted continued custody.
With the High Court refusing relief, Pal will remain in judicial custody as the money laundering proceedings move toward trial.
