Delhi HC Stays SECI’s 3-Year Ban on Reliance Power

27 Nov 2024 , 08:54 PM

Reliance Power Ltd secured a stay order from the Delhi High Court on SECI’s debarment and public notice, which had barred the company and its subsidiaries from bidding in future tenders.

The exception to this ruling applies to Reliance NU BESS Limited (formerly Maharashtra Energy Generation Limited), as clarified by the court. SECI had earlier imposed a three-year ban under the National Solar Mission, citing submission of fake bank guarantees by Reliance NU BESS.

The dispute arose after SECI reviewed bids for a 1,000 MW/2,000 MWh standalone battery energy storage system (BESS) project tendered in June. SECI found the bank guarantee endorsement submitted by Reliance NU BESS for the earnest money deposit to be falsified. SECI linked the fraudulent action to Reliance Power’s overall strategic and commercial decision-making, leading to its debarment across all subsidiaries.

In response, Reliance Power described SECI’s action as “unwarranted” and filed a legal challenge, claiming to be a victim of fraud, forgery, and criminal conspiracy. A formal complaint was lodged with Delhi Police by Reliance Power in October to address these allegations. The company assured its 4 million shareholders of its commitment to exploring all legal avenues to contest the ban and protect their interests.