Navy encashes bank guarantees as Reliance Naval fails to deliver vessels

Lanba confirmed that IDBI Bank has taken RNaval to the NCLT, seeking debt resolution

Chief of Naval Staff Admiral Sunil Lanba revealed on Monday that the Navy has encashed bank guarantees provided by Reliance Naval and Engineering (RNaval), after the latter failed to deliver even the first of five naval offshore patrol vessels (NOPVs), which were supposed to be delivered between November 2014 and November 2016.

Answering a question from the press in New Delhi about preferential treatment to RNaval, Lanba stated: “Reliance Naval’s bank guarantees have been encashed by the Navy. So punitive action has been taken against (RNaval). It is a process which is moving forward.”

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