Can Reliance Power and Reliance Infrastructure distance themselves from ED’s asset attachment?

Reliance Power Limited and Reliance Infrastructure Limited have issued parallel public clarifications following the Enforcement Directorate’s high-profile provisional attachment of assets valued at ₹10,117 crore under the Prevention of Money Laundering Act, sparking investor concern across Indian capital markets. In coordinated regulatory filings dated December 5, 2025, both entities have stated that their operations remain unaffected and that the majority of the attached assets pertain to Reliance Communications Limited, a firm that has not been part of the Reliance Group since 2019.

The move comes amid ongoing investigations by India’s financial enforcement agencies into a series of past transactions involving multiple corporate entities formerly or historically associated with the larger Reliance business ecosystem. The two companies, now operating with independent management structures, emphasized that neither has experienced any disruption in day-to-day activities and that legal counsel has been engaged to protect shareholder interests.

How much of the ED action actually involves Reliance Power and Reliance Infrastructure?

In terms of value, Reliance Communications Limited accounts for ₹8,078 crore of the total ₹10,117 crore cited by the Enforcement Directorate, according to disclosures by both Reliance Power Limited and Reliance Infrastructure Limited. Reliance Communications Limited has been under the control of a court-appointed Resolution Professional as part of an ongoing Corporate Insolvency Resolution Process and is no longer considered a Reliance Group company.

Reliance Infrastructure Limited clarified that ₹339 crore in provisionally attached assets, along with approximately ₹330 crore in other non-core assets, relate to its own balance sheet. The company emphasized that these do not affect core operations or its ongoing infrastructure activities in sectors such as engineering, metro rail, and power distribution.

Reliance Power Limited, meanwhile, confirmed that its real estate holdings at Ballard Estate, valued at ₹397.46 crore, are held on a long-term lease from the Bombay Port Trust. These assets have been identified as part of the provisional list, as have its windmill assets worth ₹10.14 crore. The firm stated that it continues to operate all power generation units as normal and that no strategic disruption is expected in the near term.

Both companies have drawn attention to the fact that an additional ₹582 crore worth of assets listed in the attachment order pertain to unrelated companies with which the Reliance Group has no involvement. This segmentation of the ED’s list is central to the clarifications being issued, particularly in light of media speculation that grouped all ₹10,117 crore under the Reliance umbrella.

Why is Reliance Communications still casting a shadow on listed Reliance Group firms?

At the heart of the current controversy is the legacy of Reliance Communications Limited, once a high-profile telecom venture within the larger Reliance Group headed by Anil D. Ambani. Since 2019, the company has ceased to be affiliated with Reliance Power Limited, Reliance Infrastructure Limited, or other operating companies under the group. However, due to overlapping brand identity and historical inter-company relationships, its legal and financial entanglements continue to have reputational implications.

Reliance Communications Limited is currently managed by a Resolution Professional under the supervision of the National Company Law Tribunal, with the State Bank of India and a consortium of lenders overseeing the resolution process through the Committee of Creditors. As such, decisions related to its assets, liabilities, or legal proceedings fall entirely under an independent governance framework.

Despite this structural separation, investor confusion persists due to perceived linkages. Market participants and legal experts believe that unless the distinction is clearly reiterated through formal channels such as SEBI and NCLT, media narratives may continue to conflate these entities.

What are Reliance Power and Reliance Infrastructure doing to manage the fallout?

Reliance Power Limited has stated that it remains committed to operational excellence, sustainable value creation, and long-term stakeholder trust. With a power generation portfolio of 5,305 megawatts, including the 3,960 megawatt Sasan Power Limited unit, the company reiterated that it continues to focus on delivering uninterrupted electricity and maintaining its position in the energy sector.

The Sasan unit, widely regarded as one of India’s most efficient coal-based power plants, has ranked among the top performers in the country for seven consecutive years. Reliance Power’s management confirmed that these operations remain fully unaffected by the Enforcement Directorate’s provisional move and that it continues to engage with regulators where necessary.

Reliance Infrastructure Limited, which is active across metro rail, road development, and defence contracts through special purpose vehicles, emphasized that its legal team is reviewing the matter and that it is prepared to take appropriate action to defend shareholder interests. With a shareholder base of over 7 lakh investors and project deployments across multiple high-growth sectors, the company stated that it continues to execute on its infrastructure roadmap without disruption.

Both companies also reiterated that Anil D. Ambani has not served on their respective boards for over three and a half years, further signaling a governance transition and distancing from legacy affiliations that are no longer applicable.

How are markets interpreting the ED action and clarifications issued by Reliance Power and Reliance Infrastructure?

Investor sentiment across both stocks remains in watch-and-wait mode. While retail investors have voiced concerns about the potential fallout, institutional flows have not seen any material exits, according to analysts tracking block trades and fund exposure to these counters. The shares of Reliance Power Limited and Reliance Infrastructure Limited traded in narrow bands following the news but did not register panic-driven selloffs.

Market participants indicate that the disclosures and clarifications issued by the companies have helped contain volatility, at least in the short term. Analysts covering the infrastructure and energy sectors believe the final outcome of the Enforcement Directorate’s investigation, and any subsequent legal action or asset recovery proceedings, will determine longer-term impact.

Until then, both stocks are expected to remain sensitive to headline risk, with any further clarification from regulatory bodies or courts likely to influence near-term movement. From a compliance perspective, no breach of listing obligations has been cited against either company as of the date of publication.

What indicators will determine how Reliance Power and Reliance Infrastructure navigate regulatory uncertainty in the coming quarters?

For Reliance Power Limited, investors are likely to monitor project execution metrics, debt refinancing developments, and any updates related to the legal status of its leased assets at Ballard Estate. Operational indicators from the Sasan Power plant and other generation assets will also serve as a barometer for business continuity amid the external noise.

For Reliance Infrastructure Limited, attention will remain on execution momentum across its metro, roads, and defence segments, as well as clarity regarding the exact nature and classification of the provisionally attached assets. The company’s active project SPVs and order pipeline in the engineering and construction sector will likely remain key drivers of medium-term performance.

The group’s emphasis on legal independence, asset classification, and board governance is expected to play a central role in maintaining investor confidence as regulatory scrutiny unfolds. While both companies face a temporary overhang, neither appears fundamentally impaired, provided the legal proceedings are concluded without direct operational impact.