Reliance Power Faces SECI Ban Over Fake Document Allegations

Reliance Power Ltd and Reliance NU BESS Ltd have been banned for three years from SECI tenders due to allegations of fake document submissions. This development triggered a 5% drop in the company's stock price. The controversy arose after fraudulent documents were found during a solar energy tender process.

Shares of Reliance Power Ltd experienced a significant decline of 5% following their debarment from Solar Energy Corporation of India Ltd (SECI) tenders. Both Reliance Power and Reliance NU BESS Ltd are accused of submitting falsified documents. As a result, the company's stock reached its lower trading limit on both BSE and NSE.

In a detailed note, SECI revealed that the examination of documents provided by Maharashtra Energy Generation, now rebranded as Reliance NU BESS, showed fraudulent endorsement of a Bank Guarantee required for tender eligibility. This revelation emerged during the competitive bidding process for a major BESS project.

The discovery of these discrepancies post-auction compelled SECI to nullify the tender, enforcing a three-year ban on the implicated firms. As per SECI's tender rules, the submission of fake documents qualifies for such stringent punitive measures.

(With inputs from agencies.)