Reliance Infrastructure Ordered to Pay ₹494 Crore in EPC Dispute

23 Dec 2024 , 03:32 PM

Reliance Infrastructure Ltd, led by Anil Ambani, has been ordered to pay ₹494 crore with interest in an arbitration order The order was passed by the arbitral tribunal on December 18, 2024, in the case of EPC contract dispute of Aravali Power Company Private Ltd (APCPL). The three-member tribunal delivered its verdict in favour of APCPL with a 2:1 majority.

Reliance Infrastructure accepted the judgement through a regulatory filing wherein it mentioned that it was reviewing the details of the award.

The company is going to challenge the arbitration decision by resorting to appropriate legal remedies for protecting its interest. Reliance Infrastructure further emphasized the intent of taking all required steps to protect the position of the company in this matter.

In a recent development, Reliance Infrastructure settled a big amount of financial liability it had against Yes Bank Limited with its wholly-owned subsidiary company JR Toll Road Private Limited (JRTR). A settlement agreement was signed and the debt of ₹ 271.18 crore was settled, with Yes Bank on 26 November 2024, through JRTR.

According to this settlement, there was an adjustment of all the interest that had stood accrued along with the said principal amount of the aforesaid financial liability.

This deal also freed Reliance Infrastructure, which was the corporate guarantor for JRTR, from any future liabilities attached to the loan. These steps reflect the continued efforts of Reliance Infrastructure in handling legal issues and ensuring proper management of financial obligations.