Reliance Power CFO, Two Others Arrested By EOW Over Alleged Forged Bank Guarantees

Three individuals, including a senior executive of Reliance Power, have been arrested for allegedly forging bank guarantees to secure a corporate tender, officials from the Economic Offences Wing (EOW) said.According to investigators, the accused include the company’s Chief Financial Officer, who is suspected of orchestrating the submission of fabricated bank guarantees as part of the bidding process. These guarantees were allegedly used to meet mandatory financial eligibility criteria and enhance the company’s chances of securing the tender. Officials said the documents appeared legitimate at first glance, carrying the names of established banks, but were later found to be fraudulent upon closer verification.

The alleged irregularities came to light during routine due diligence checks conducted by the concerned authorities. Once discrepancies were detected, the matter was escalated to the EOW, which initiated a detailed probe into the authenticity of the guarantees and the individuals involved. Investigators believe the accused may have coordinated internally and externally to produce documents that could withstand preliminary scrutiny.

The EOW has registered a case under sections related to cheating, forgery, and criminal conspiracy, and further legal action is underway. Officials indicated that digital records, email communications, and financial trails are being examined to determine the full scope of the alleged fraud. The role of other company officials and possible involvement of third-party intermediaries is also under investigation.

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Sources familiar with the case said authorities are probing whether similar forged instruments were used in other tenders or financial dealings linked to the company. If established, the case could widen significantly, potentially exposing systemic lapses in internal controls and compliance mechanisms. Investigators are also verifying whether any bank officials were complicit or if their identities were misused in the process.

Reliance Power has not yet issued a detailed statement regarding the arrests or the allegations. The development comes at a time when regulatory scrutiny around corporate governance and financial disclosures is intensifying, particularly in sectors involving large-scale infrastructure and energy projects. The outcome of the investigation is expected to have implications not only for the individuals involved but also for broader industry practices concerning transparency and due diligence in tendering processes.

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