Reliance Power Faces Scrutiny Over Fake Bank Guarantees: Criminal Proceedings Loom

The Solar Energy Corporation of India (SECI) has issued a showcause notice to Reliance Power and its subsidiary, Reliance NU BESS, for submitting fraudulent bank guarantees. Reliance Power denies wrongdoing, claiming it is a victim of fraud. The matter is under investigation by the Economic Offence Wing of Delhi Police.

In a major development, the Solar Energy Corporation of India (SECI) has sent a showcause notice to Reliance Power and its subsidiary for allegedly submitting fake bank guarantees. The notice, which comes on the back of SECI barring the company from tender participation, suggests that criminal proceedings may be initiated.

Reliance Power, on the other hand, has publicly stated that it is not at fault and that it is a victim of fraud, forgery, and cheating conspiracy. The company has lodged a criminal complaint with the Economic Offence Wing of Delhi Police, which is now investigating the matter, according to recent filings.

SECI's notice highlights the submission of counterfeit documents, purportedly endorsed by a foreign bank, which upon further investigation were found to be fake. As a consequence, Reliance Power's shares saw a drop of 1.53% on BSE.

(With inputs from agencies.)