Solar Energy Corp bars Anil Ambani’s Reliance Power for 3 years over fake tender document

New Delhi: In a setback for Reliance Power’s green energy plans, Solar Energy Corp. of India (SECI) has barred the Anil Ambani company, its subsidiaries and Reliance NU BESS Ltd from participating in tenders issued by the state-owned company for three years.

This ban comes in response to the submission of alleged fake documents by the Anil Ambani companies in a tender released by SECI in June, which sought bids for setting up 1000 MW/2000 MWh standalone BESS projects, SECI said in a release on Thursday. Following this, the tender process was finally cancelled.

After reviewing the documents submitted by Maharashtra Energy Generation Ltd, now known as Reliance NU BESS Ltd, it was discovered that the endorsement of the bank guarantee against earnest money deposit, issued by a foreign bank, was fake, SECI said.

"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,” it said.

Describing SECI's move as an “unwarranted action”, Reliance Power has said that it would take legal action to challenge the debarment.

“A criminal complaint in this regard has already been lodged with Economic Offence Wing of Delhi Police against the third party on October 16, 2024. The due process of law will follow. The company will take all appropriate legal steps to challenge the unwarranted action of SECI in the interest of its more than 40 lakh shareholders,” it said in an exchange filing.

Reliance Power also said that the company and its subsidiaries acted “bonafidely” and have been a victim of fraud, forgery and cheating conspiracy.

Also Read: Real costs: Why solar and wind energy are not market winners yet

Business Standard reported on 4 November that the tender had been canceled due to fake documents submitted by the Reliance Power subsidiary.

The development assumes significance given that SECI, which issues tenders to renewable energy companies for solar, wind, and hybrid projects, expects to tender 20 GW of projects in the ongoing fiscal, with the government setting a target of tendering 50 GW of green power capacity every year till FY28.

Reliance Power has assets in the coal, gas, hydro, and renewable energy sectors, with a commissioned portfolio of 5,300 megawatts. 

Also Read: Renewable energy is starting to shrink the power bills of cement, metal firms

On 6 November, Rosa Power Supply Company Ltd, a subsidiary of Reliance Power, announced that it has prepaid ₹485 crore loan to Singapore-based lender Varde Partners, achieving a zero-debt status. Earlier in September, Rosa Power had prepaid Rs. 833 crore to Varde Partners.