 "SECI bars Reliance Power for three years over fake tender document")
Solar Energy Corporation of India (SECI) has debarred Reliance Power from participating in any of its future tenders for three years for submitting a fake document for a tender floated by the state-run entity in June this year.
Any subsidiary of Reliance Power (R-Power) has also been barred from SECI tenders, said a public notice issued by SECI, under the aegis of the Ministry of New and Renewable Energy (MNRE).
“Based on the above and in line with the tender conditions, it is hereby intimated that the entities, namely M/s Reliance NU BESS Limited, and M/s Reliance Power Limited (including its subsidiaries) stand debarred from participating in all the future tenders issued by SECI until 3 years from the date of issuance of the debarment notice,” SECI said in a notice dated November 6.
In June, SECI issued a request for selection (RfS) for receiving bids for 1Gw of solar with 2Gw of standalone battery storage. Anil Ambani's R-Power was one of the successful bidders through its subsidiary Maharashtra Energy Generation Limited. It quoted one of the lowest bids received till date for battery storage at Rs 3.81 per unit. The other similar winning bid was from JSW Energy.
“Based on the examination of documents submitted by M/s Maharashtra Energy Generation Limited now known as M/s Reliance NU BESS Limited under the above RfS, it was discovered that as per the tender requirements, the endorsement of the bank guarantee against EMD (issued by a foreign bank), as submitted by the bidder, was fake. Since the above discrepancy was discovered subsequent to the e-Reverse Auction, SECI was constrained to annul the tendering process,” the SECI notice said.
Earlier this week, this paper reported R-Power had submitted invalid bank documents twice for the said tender using an email ID which was later flagged by State Bank of India (SBI) to be fake. SECI did not respond to Business Standard's emailed queries then.
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In its notice, SECI said, as per the tender conditions, the submission of a fake document as part of its response to RfS rendered R-Power eligible for debarment from future tenders issued by SECI.
“The bidder, being a subsidiary of M/s Reliance Power Limited, had met the Financial Qualification Requirements using the strength of its parent company. Upon detailed examination of the matter, it was found logical to conclude that all the commercial and strategic decisions undertaken by the bidder were fundamentally driven by the parent company," the notice said.
"Thus, it became imperative to debar the parent company, i.e. M/s Reliance Power Limited from participating in the future tenders issued by SECI,” it added.
R-Power had submitted a bank guarantee of the Philippines-based FirstRand Bank, which it claimed had an endorsement from a Delhi-based branch of State Bank of India. The bank denied issuing any such endorsement and also flagged the email ID (sbi.17313@s-bi.co.in) used in the communication to be fake.
Responding to the notice, R-Power in a statement to the exchanges said the endorsement was arranged by a third party, "In this regards, we would like to clarify, the Company and its subsidiaries acted bonafidely and have been a victim of fraud, forgery and cheating conspiracy. A criminal complaint in this regard has already been lodged with Economic Offence Wing of Delhi Police against the third party on October 16, 2024. The due process of law will follow. The Company will take all appropriate legal steps to challenge the unwarranted action of SECI in the interest of its more than 40 lakh shareholders.' The case
- SECI is the sole central body tendering solar, wind, and other green energy projects
- Floated 1Gw solar + 2Gw battery energy storage project in June 2024
- R-Power was one of the winning bidders
- SECI found out R-Power submitted invalid bank documents
- SECI has now debarred R-Power and its subsidiaries from future tenders for 3 years