Reliance Infrastructure Limited (Reliance Infra) has been downgraded by India Ratings & Research (Ind-Ra) for its bank loan facilities. The long-term rating has been revised to ‘IND C’ from ‘IND B’ /Stable, and the short-term rating has been affirmed as ‘IND A4’. The downgrade is primarily due to an order from the Enforcement Directorate (ED) to place a lien on the company’s bank accounts totaling approximately ₹778.6 million, citing alleged violations of the Foreign Exchange Management Act (FEMA). Further, the ED has provisionally attached properties belonging to Reliance Infra worth approximately ₹6,690 million under an investigation pursuant to the Prevention of Money Laundering Act (PMLA). The company, however, stated that these attached assets are non-core in nature. Additionally, on October 6, 2025, Reliance Infra received a show-cause notice from the Securities and Exchange Board of India (SEBI) for alleged violations of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations. The company is taking appropriate legal measures. Ind-Ra noted that as of September 30, 2025, the company held ₹110 million in unencumbered cash. However, the ED’s lien on bank accounts significantly restricts liquidity. The company also lacks fund-based working capital limits. Despite these challenges, the absence of significant near-term debt repayments provides some liquidity cushion. The company is pursuing plans to raise USD600 million through foreign currency convertible bonds (FCCBs) and expects to receive balance proceeds from warrants, which could strengthen its liquidity profile.