Reliance Power Faces Trouble After Fake Bank Guarantees Exposed; SECI Issues Showcause Notices

Reliance Power, led by Anil Ambani, is facing scrutiny after the Solar Energy Corporation of India (SECI) issued a show-cause notice to the company. SECI is questioning why criminal action should not be taken against Reliance Power and its subsidiary, Reliance NU BESS, for allegedly submitting fake bank guarantees.

Last week, SECI banned both Reliance Power and Reliance NU BESS from participating in its tenders after discovering that the companies had submitted fake documents in their bids.

In a statement, Reliance Power claimed it was a victim of a fraud conspiracy, stating that a criminal complaint had already been filed with the Economic Offence Wing of Delhi Police on October 16, 2024. The police have registered a First Information Report (FIR) on November 11, 2024, and investigations are underway.

According to SECI’s notice dated November 13, Reliance NU BESS had submitted a fake Foreign Bank Guarantee (BG) in its bid. The BG, claimed to be issued by FirstRand Bank, was found to be fake when SECI discovered that there was no branch of the bank in the Philippines, where the document had supposedly originated.

SECI stated that the repeated submission of fake BGs was a deliberate attempt to manipulate the tendering process and secure project capacity through fraudulent means. As a result, SECI issued show-cause notices to both Reliance Power and Reliance NU BESS, asking them to explain why criminal proceedings should not be initiated against them.

On November 6, SECI had already debarred Reliance Power and Reliance NU BESS from participating in future SECI tenders for three years due to submitting fake documents.

Reliance Power’s shares closed at ₹36, down by 1.5% on Thursday, while the Sensex fell by 0.14%. Despite this drop, Reliance Power’s shares have gained 50% in 2024 and 124% over the past two years. The company currently holds a market capitalization of ₹14,461 crore.