Fraud Row: SECI Withdraws Curbs Against Reliance Power

The Solar Energy Corporation of India (SECI) has now backtracked on its plan to impose restrictions on Anil Ambani-led Reliance Power. The central utility had issued a notice around a month back to blacklist the company and its subsidiary to take part in SECI for three years.

The original action came against allegations of allegedly using forged documents by Reliance Power subsidiary–Reliance NU BESS Limited to take part in a SECI tender. After the news came to the fore, SECI swung into action and debarred the firm for three years.

However, in the latest notification, SECI cited the ongoing legal proceedings in the case. “This has reference to the public notice dated 06.11.2024, regarding SECI’s decision of debarring M/s Reliance Power Limited and M/s Reliance NU BESS Limited from participating in all the future tenders issued by SECI until 3 years from the date of issuance of the debarment notice.”

Relief from the immediate effect

“Following the legal proceedings related to this matter, it is hereby notified that the Debarment Notice issued to M/s Reliance Power Limited has been withdrawn, with immediate effect. This withdrawal is without prejudice to SECI’s right to take all actions in accordance with the law. Accordingly, the public notice dated 06.11.2024, stands modified to the limited extent as above,” the SECI notification read. 

SECI’s earlier notice on November 13 said that Reliance Power submitted a fake endorsement of a foreign bank guarantee (BG) during bid submission. It also said that the BG submitted by Reliance NU BESS Ltd was also found to be fake.

How SECI was allegedly de-frauded 

“The repeated submission of a fake Bank Guarantee (BG) along with its counterfeit endorsement has been deemed a deliberate act by the Bidder, intended to vitiate the tendering process and to secure the project capacity through fraudulent means. This conduct demonstrates a malafide intent to manipulate the outcome,” the earlier notice of SECI had said on November 13.

SECI had said that the group submitted BGs from a bank branch in the Phillippines which did not exist in reality.

“The Bidder had submitted a BG purportedly issued by the FirstRand Bank, through its branch supposed to be located in Manila City, Manila, Philippines. Upon detailed investigation, it was confirmed by the Indian branch of the above Bank, that there does not exist any such branch of the Bank in Philippines, leading SECI to conclude that the BG submitted was a fake document,” SECI said.