NEW DELHI: State-run renewable project aggregator SECI on Tuesday withdrew its order banning Anil Ambani-led Reliance Power (R-Power) for three years from bidding for projects.
SECI had imposed the ban on grounds of its group entity, Reliance NU BESS, submitting allegedly invalid bank guarantee in one of its recent tenders. The ban was imposed without seeking R-Power’s response to the allegation, an argument the company had put forth while challenging the ban in the Delhi high court.
“The company (R-Power) and its subsidiaries (except Reliance NU BESS) are eligible to participate in all tenders issued by SECI,” the parent said in a statement.
R-Power had invoked the principle of natural justice and arguments that the parent company or other group entities cannot be debarred because of an “issue” arising between the bidder subsidiary – Reliance NU BESS – and SECI. R-Power further argued that SECI did not issue notice for the company’s response before imposing the ban.
Staying the SECI ban imposed on Nov 6, the court also ordered removal of the public notice, except regarding Reliance NU BESS, from the SECI website and set the next hearing for Dec 12.
The bank guarantee in question was purportedly issued by the FirstRand Bank through its branch supposed to be located in Manila City (Philippines). But during SECI’s due diligence, however, the bank’s Indian branch denied existence of any branch in Manila City, prompting the agency to conclude the company had submitted “fake documents”.
