Adani Transmission says Reliance Infra's claim against it are not based on facts

13 Sep 2022 , 08:15 AM

On Monday, Adani Transmission stated that it is according to the procedures outlined in the share purchase agreement (SPA) for the resolution of disputes with Reliance Infrastructure  (R-Infra), a company owned by the Anil Ambani Group.

Adani Transmission stated in a regulatory filing that it would respond with details and make its own allegations against R-Infra during the arbitration process.

R-Infra filed an international arbitration action against Adani Transmission Ltd. before the Mumbai Centre for International Arbitration (MCIA) for Rs13,400 crore ($1.7 billion) on September 9.

R-Infra stated in a regulatory filing that the arbitration claim relates to what is alleged to be a breach of its share purchase agreement with Adani Transmission from December 2017 regarding the sale of its Mumbai power distribution business. The nature of the alleged contract violation was not disclosed by the corporation.

R-Infra submitted supplemental arbitration requests this year in February and August, bringing up new conflicts and claims.

Adani Transmission stated, “In our opinion, these are after thoughts and founded on untenable positions.

On Monday, Reliance Infrastructure’s stock ended at Rs174.10, up7.17%, and Adani Transmission Ltd.’s stock ended at Rs4005.85, up 1.89% on the BSE.

In 2017, the Adani group purchased the Mumbai power business, which included generation, distribution, and transmission, from R-Infra (formerly Reliance Energy), in a deal of Rs18,800 crore.

The agreement helped the Adani Group transform from a generation and transmission company into a fully integrated power utility by giving it a presence in the distribution sector. The largest private sector transmission and distribution company in India is Adani Transmission.

The agreement was made to assist Reliance Infra in paying off its debt of Rs15000 crore.

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