Reliance Power, Reliance NU BESS Barred for 3 Years by SECI for Submitting Fake Bank Guarantee

Moneylife Digital Team 08 November 2024

Economy & Nation

State-run Solar Energy Corporation of India Ltd (SECI) has barred Reliance Power Ltd and Reliance NU BESS Ltd for three years for submitting fake documents, including a bank guarantee from a foreign bank. On Friday, Reliance Power tumbled 5% to Rs41.74 on BSE. The issue is related to the request for selection (RfS) issued by SECI on 26 June 2024 for setting up a 1000MW/ 2000 MWh stand-alone battery energy storage systems (BESS) project under tariff-based competitive bidding.

In a release, the company working under the Union ministry of new and renewable energy, says, "Based on the examination of documents submitted by Maharashtra Energy Generation Ltd (the bidder), now known as Reliance NU BESS Ltd under the request for selection (RfS), it was discovered that as per the tender requirements, the endorsement of the bank guarantee against earnest money deposit (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."

"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 Reliance Power, 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. Reliance Power, from participating in the future tenders issued by SECI," it added.

In a regulatory filing, Reliance Power, however, says that it has been a victim of fraud, forgery and cheating conspiracy. "A criminal complaint in this regard has already been lodged with the economic offence wing (EOW) of Delhi police against the third party on 16 October 2024. The due process of law will follow," it says.

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