On November 8, shares of Reliance Power fell by 5%, hitting the lower circuit at ₹41.47 on the Bombay Stock Exchange (BSE), following the Solar Energy Corporation of India’s (SECI) decision to ban the company and its subsidiary, Reliance NU BESS, from participating in SECI tenders for the next three years. The ban was issued after SECI alleged that “fake documents” were submitted during a tendering process.
The controversy emerged when SECI examined documents submitted by Maharashtra Energy Generation, now renamed Reliance NU BESS, in a project bid. According to SECI, the Bank Guarantee presented to meet the Earnest Money Deposit (EMD) requirement was deemed “fake,” as it lacked necessary endorsements from a foreign bank.
As a result, SECI stated that the tender process had to be canceled after reaching the e-Reverse Auction stage. SECI’s regulations stipulate that submission of fraudulent documentation results in a ban from future tenders.
Reliance NU BESS qualified for the tender based on the financial credentials of its parent company, Reliance Power. SECI’s investigation concluded that the subsidiary’s commercial strategies were significantly directed by Reliance Power, highlighting the parent company’s influence in the process.
*(Disclaimer: This information is for educational purposes only. Readers are advised to consult financial experts before making investment decisions.)*
