Reliance Power shares fell sharply on Monday after the Enforcement Directorate filed a chargesheet in a fake bank guarantee case. The stock dropped more than 6% and touched about Rs. 35 on the BSE. The fall came with very heavy trading. Nearly 4 crore shares were traded, almost twice the usual weekly average. This showed strong selling pressure in the market.
The ED chargesheet names Reliance Power, its two subsidiaries, and several people linked to the company. One of the names in the list is former CFO Ashok Kumar Pal. The agency says the case is related to a fake bank guarantee of around Rs. 68 crore. The document was used to secure a tender from Solar Energy Corporation of India. The ED says the guarantee was forged and sent through a fake email account.
The company issued a detailed statement after the chargesheet was filed. It said its employees and subsidiaries acted in good faith. According to the company, the fraud was committed by outside parties. It also said the ED charges have not been tested in court and any final decision will come only after the legal process. The company added that its operations remain normal.
The stock has been under pressure for months. It has fallen by 10% in the last month and by 23% in the previous three months. In six months, the share has dropped around 43%. On a year-to-date basis, the stock is also down. Even with these recent losses, the long-term history shows sharp swings. Over the past five years, the stock has given very high returns, rising more than 800%.
Stock market experts say the fresh chargesheet created fear among investors. The rise in trading volume also shows that many people reacted quickly to the news. The stock is expected to stay volatile as the case moves further in court. More clarity may come once hearings begin and the company presents its side.
For now, Reliance Power faces strong market pressure and legal scrutiny simultaneously. The coming weeks will be important for both the stock and the company’s broader image.
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