SECI Imposes Bar On Anil Ambani’s Reliance Power For 3 Years

SECI Imposes Bar On Anil Ambani's Reliance Power For 3 Years

The Solar Energy Corporation of India (SECI) has now issued an official notification to bar Anil Ambani-led Reliance Power, Reliance NU BESS, and any of its subsidiaries from participating in tenders for the next three years. This comes after investigations revealed the alleged use of forged documents to win SECI tenders by the firm.

This comes after the anomalies were reported to SECI in response to the submission of bid documents to the authority by the Reliance Group in reference to its 1000MW/2000MWh standalone Battery Energy Storage System (BESS) tender.

The notification by SECI admitted use of “fake” bank guarantees by the Reliance entities to win the tender. “Based on the examination of documents submitted by M/s Maharashtra Energy Generation Limited (the “Bidder”), now known as M/s Reliance NU BESS Limited under the above RfS, it was discovered that as per the tender requirements, the endorsement of the Bank Guarantee against EMD (issued by a foreign Bank), as submitted by the Bidder, was fake. Since the above discrepancy was discovered subsequent to the e-Reverse Auction, SECI was constrained to annul the tendering process,” a statement by SECI said.

Reliance, in a submission to the Stock exchanges, has claimed that it was a victim of said fraud, cheating and forgery itself, and has taken appropriate action including a complaint with the Economic Offences Wing of Delhi Police, against the third party that arranged the said guarantee. It has promised to challenge the SECI action legally, terming it unwarranted. 

SECI said that the subsidiary (Reliance NU BESS) qualified for the financial criteria using the strength of its parent company-Reliance Power Limited. It said that it was found that all decisions were undertaken by the bidder, driven by the parent company.

“As per the tender conditions, the above submission of a fake document as part of its response to RfS, rendered the Bidder eligible for debarment from future tenders issued by SECI. The Bidder, being a subsidiary of M/s Reliance Power Limited, had met the Financial Qualification Requirements using the strength of its Parent Company. Upon detailed examination of the matter, it was found logical to conclude that all the commercial and strategic decisions undertaken by the Bidder were fundamentally driven by the Parent Company. Thus, it became imperative to debar the Parent Company, i.e. M/s Reliance Power Limited from participating in the future tenders issued by SECI,” the tendering authority of the Ministry of Power said.

In its final verdict, SECI said, “Based on the above and in line with the tender conditions, it is hereby intimated that the entities, namely M/s Reliance NU BESS Limited, and M/s Reliance Power Limited (including its subsidiaries) stand debarred from participating in all the future tenders issued by SECI until 3 years from the date of issuance of the debarment notice.”

The latest development came to the fore after pressure was mounted on the authorities concerned after the allegations against Reliance were made and tender documents revealed irregularities.