Reliance Power shares rally 8% ahead of Q2 results as company denies links to ED arrest in fake guarantee case

Core Viewpoint - Reliance Power asserts that the recent arrest of Amar Nath Dutta has no impact on its business operations or financial performance, claiming to be a victim of fraud and forgery [1][7]. Group 1: Arrest and Investigation - Amar Nath Dutta, a consultant, was arrested by the Enforcement Directorate (ED) for allegedly submitting forged bank guarantees worth over ₹68 crore to assist a Reliance Power subsidiary in qualifying for a tender [1][8]. - Dutta is said to have coordinated with Ashok Pal, the former CFO of Reliance Power, and Partha Sarathi Biswal, managing director of Biswal Tradelink Pvt Ltd, who were previously arrested in the same case [2][8]. - The ED's investigation is part of a broader probe into alleged money laundering and loan fraud involving Reliance Group, with Anil Ambani summoned for questioning regarding a separate bank loan fraud case [4][8]. Group 2: Financial Performance - Reliance Power's shares surged by 7.8% to ₹42.30 following the company's clarification regarding the arrest [7]. - For Q1 FY26, Reliance Power reported a consolidated net profit of ₹44.68 crore, a recovery from a loss of ₹97.85 crore in the same quarter the previous year [6][8]. - Revenue from operations decreased by 5.3% year-on-year to ₹1,885.58 crore, while total income fell by 2% to ₹2,025 crore [6][8]. - Despite the year-on-year profit recovery, net profit dropped 64% sequentially from ₹125.57 crore in the March quarter [7][8].