In recent weeks, Reliance Power and Reliance Infra have faced intensive investigation as the shares of these two companies have seen significant decline. The decline has been mainly due to investigation of allegations of large loan fraud of Rs 17,000 crore by the Enforcement Directorate (ED). This investigation has created serious concerns among investors, resulting in a fall in the prices of shares and a blur on the future of these major companies.

Investigation of the Enforcement Directorate against Reliance Power and Reliance Infra is part of extensive action on financial disturbances in India. Especially about the allegations in which loans taken from banks were spent for projects that never started, it attracted ED’s interest. This has created upheaval in the financial community and has raised many questions on the operational processes of companies.

As soon as the news of the ED investigation came out, the stock market reacted rapidly. The shares of Reliance Power and Reliance Infra declined drastically, indicating nervousness and uncertainty among investors. Within a few days, Reliance Power’s shares fell over 15%, while Reliance Infra also saw the same decline. This development not only affected these companies, but also created a stir in the entire market, which affected the investor spirit in infrastructure and power sectors.

 

Investors are naturally concerned about the effect of ED investigation. The financial situation of Reliance Power and Reliance Infra has been questioned, and analysts estimate that these companies may have cash problems and cannot be able to meet their financial commitments. In addition, the possibility of legal results can make the operation operations more complicated for these companies.

In response to the allegations and subsequent market reactions, Reliance Power and Reliance Infra have issued statements, repeating their transparency and compliance commitment. They have said that they are fully collaborating in the ED investigation and have expressed confidence that they will resolve the questions raised by the investigation. However, this assurance may not be enough to calm the fear of investors, many of which are now rethinking their investment status.

The ongoing ED investigation presents an important challenge for Reliance Power and Reliance Infra. As the investigation proceeds, it will be important for companies to maintain open dialogue with all the parties on their behalf, so that trust can be restored. In addition, the result of the investigation can set an example for regulatory investigation into the infrastructure sector, which will highlight the need for strong governance and financial practices.