SECI Revokes Ban on Reliance Power

In a significant development, the State-run renewable project aggregator, SECI, has withdrawn its three-year ban on Anil Ambani-led Reliance Power (R-Power) from bidding for projects. The ban was imposed due to an alleged invalid bank guarantee submitted by Reliance NU BESS, a group entity, in one of its recent tenders.

The ban was imposed without seeking R-Power's response to the allegation, a point the company emphasized while challenging the ban in the Delhi High Court. "The company (R-Power) and its subsidiaries (except Reliance NU BESS) are eligible to participate in all tenders issued by SECI," the parent company stated in a recent release.

R-Power invoked the principle of natural justice, arguing that the parent company or other group entities should not be debarred due to an issue arising between the bidder subsidiary, Reliance NU BESS, and SECI. The company further argued that SECI did not issue a notice for its response before imposing the ban.

Staying the SECI ban imposed on November 6, the court also ordered the removal of the public notice, except regarding Reliance NU BESS, from the SECI website. The next hearing is set for December 12.

The bank guarantee in question was purportedly issued by the FirstRand Bank through its branch in Manila City, Manila, the Philippines. However, during SECI's due diligence, the bank's Indian branch denied the existence of any branch in Manila City, prompting the agency to conclude that the company had submitted fake documents.