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Anil Ambani, the chairman of the Reliance Group, is facing mounting legal troubles as the Solar Energy Corporation of India (SECI) has taken serious action against his company, Reliance Power. SECI has issued a show cause notice to Reliance Power, demanding an explanation as to why criminal charges should not be filed against the company and its subsidiary, Reliance NU BESS. This action stems from the discovery that Reliance Power had submitted fake bank guarantees in connection with bids for renewable energy projects.
The controversy began on November 6, 2024, when SECI barred both Reliance Power and its subsidiary from participating in any of its tenders for a period of three years. This ban was imposed due to the submission of “fake documents” during the bidding process. As a consequence of these developments, Reliance Power shares experienced a decline of 1.53 percent on Thursday, closing at Rs 36 on the Bombay Stock Exchange (BSE).
In response to SECI's actions, Reliance Power issued a statement to the stock exchanges claiming that it had become “a victim of fraud, forgery, and cheating conspiracy.” The company further revealed that it had filed a criminal complaint with the Economic Offence Wing of the Delhi Police on October 16, 2024, against a third party involved in the alleged fraud. Subsequently, on November 11, 2024, a First Information Report (FIR) was registered based on this complaint. The company stated that the matter is currently under investigation and will be handled through due process of law.
However, SECI, in its notice dated November 13, 2024, maintained its stance, arguing that the submission of a fake bank guarantee endorsement by Reliance NU BESS was a deliberate act intended to manipulate the tendering process. The notice alleged that the bank guarantee purportedly issued by FirstRand Bank through its branch in Manila City, Manila, Philippines, was confirmed to be fraudulent by the Indian branch of FirstRand Bank, which confirmed that no such branch exists in the Philippines. This revelation led SECI to conclude that the bank guarantee submitted by Reliance NU BESS was a fabricated document.
The situation raises serious concerns about the integrity of the tendering process in the renewable energy sector and highlights the potential for fraud and manipulation within the industry. The outcome of the investigation and the legal proceedings initiated by both Reliance Power and SECI will have significant implications for the company and its future participation in renewable energy projects in India. Additionally, the incident underscores the need for robust regulatory oversight and strong enforcement mechanisms to ensure fair and transparent competition within the sector.
Source: BIG trouble for Anil Ambani, criminal charges against his Rs 14422 crore company over...