SECI Bars Reliance Power for 3 Years Over Fake Document

SECI has barred Reliance Power Ltd. and its subsidiaries from participating in future tenders for 3 years due to alleged submission of a fraudulent bank guarantee. In response to this, Reliance Power claims it acted in good faith, was victimised by fraud, and has filed a criminal complaint against the third party.

November 07, 2024. By EI News Network

In a major setback for Reliance Power, the Solar Energy Corporation of India (SECI) has barred the company and its subsidiaries from participating in SECI’s future tenders for 3 years.

The State-owned SECI announced this recently, citing the submission of allegedly fake document by the companies in a tender released by SECI in June for setting up 1000 MW/2000 MWh standalone Battery Energy Storage System (BESS) projects. As a result, SECI ultimately cancelled the tender process.

The dispute originated with Maharashtra Energy Generation Ltd., now renamed Reliance NU BESS Ltd., which had submitted a bank guarantee for an earnest money deposit. SECI revealed that upon review, the bank guarantee endorsement—issued by a foreign bank—was found to be fraudulent.

According to SECI, the bidder relied on financial qualifications provided by its parent company, Reliance Power, to meet the tender’s requirements. SECI concluded that the decision-making and financial strategies of Reliance NU BESS Ltd. were significantly directed by its parent company, influencing its submission.

However, in response to this, Reliance Power Ltd. has clarified in an exchange filing that the company and its subsidiaries acted bonafidely and were victims of a fraud, forgery, and cheating conspiracy. The firm further said that a criminal complaint in this regard has already been lodged with the Economic Offences Wing of the Delhi Police against the third party on October 16, 2024. The company stated that the due process of law will follow and that it will take all appropriate legal steps to challenge SECI's unwarranted action in the interest of its more than 40 lakh shareholders.

This development comes as SECI, which plays a crucial role in driving India’s renewable energy sector, prepares to tender 20 GW of projects in the current fiscal year. The government has set an ambitious goal of tendering 50 GW of green energy projects annually through SECI until FY28.

Tags:

Battery Energy Storage Systems

Maharashtra Energy Generation Ltd

Reliance NU BESS Ltd

SECI Bars Reliance Power