Reliance Power Shares Continue To Hit Lower Circuit As Anil Ambani Set To Appear Before ED Today

Reliance Power Ltd.'s share price plummeted by 5%, hitting the lower circuit limit on Tuesday, as Reliance Group Chairman Anil Ambani is set to appear before probe agency Enforcement Directorate today for questioning in connection with an alleged Rs 17,000 crore worth bank loan fraud-linked money laundering case. The stock has continued to remain in lower circuit for the the third consecutive day, as per Bloomberg.

The illegal loan fraud linked to Anil Ambani Group companies as one of the biggest corporate loan frauds currently under investigation, that has thrust the spotlight once again on some of the largest corporate loan frauds in India’s recent history, highlighting persistent challenges in bank loan recoveries and corporate governance.

The Anil Ambani case involves complex financial dealings, including alleged quid pro quo arrangements with bankers, suspicious investments routed through shell companies, and forged bank guarantees.

Shares of Reliance Power fell as much as 5% to Rs 45.20 apiece to hit lower circuit, as of 10 a.m. This compares to a 0.5% decline in the NSE Nifty 50.

The stock has risen 37.76% in the last 12 months and 6.10% year-to-date. Total traded volume so far in the day stood at 2.28 times its 30-day average. The relative strength index was at 46.66.