Mumbai: Reliance Power share price will be in focus on November 18, 2024, i.e., Monday, after India’s clean energy agency Solar Energy Corporation of India Ltd (SECI) issued a show cause notice to Anil Ambani-led company. The notice demands a reply from the firm as to why criminal proceedings should not be initiated after a fake bank guarantee was submitted by its unit. RPower shares declined 1.53 per cent to settle at Rs 36 on BSE on 14th November.
Reliance Power share price history data shows that the stock gained around 40 per cent in the last six months and 60 per cent in the last one year.
Why SECI barred Reliance Power
It may be noted that SECI has banned Reliance Power and its units from taking part in auctions for three years over allegations after it emerged that one of the units of the firm submitted a fake endorsement of a foreign bank guarantee.
SECI issued the notice on November 13 which mentioned that the bank guarantee submitted by Reliance NU BESS, a subsidiary of Reliance Power – known as Maharashtra Energy Generation Ltd – was also fake. Meanwhile, Reliance Power denied any wrong doing and told the exchanges that it is “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, basis on which First Information Report (FIR) has been registered on November 11, 2024. The matter is under investigation and due process of law will follow,” Reliance Power said.
The SECI notice stated that after the submission of a fake endorsement of a foreign Bank Guarantee (BG), it was found that the said BG submitted by Reliance NU BESS Ltd, was also fake.
“The repeated submission of a fake Bank Guarantee (BG) along with its counterfeit endorsement has been deemed a deliberate act by the Bidder, intended to vitiate the tendering process and to secure the project capacity through fraudulent means,” SECI said in the notice.
“SECI has issued showcause notices to the entities, namely Reliance Power Ltd. and Reliance NU BESS Ltd, seeking explanation as to why SECI should not initiate criminal proceedings against them, in view of the fraudulent and forged actions,” the notice stated.
The SECI notice stated that the bidder had submitted a BG purportedly issued by the FirstRand Bank, through its branch supposed to be located in Manila City, Manila, Philippines. Upon detailed investigation, it was confirmed by the Indian branch of the above Bank, that there does not exist any such branch of the Bank in Philippines, leading SECI to conclude that the BG submitted was a fake document.
Rpower share price in focus after the Solar Energy Corporation of India Ltd (SECI) issued showcause notices to Reliance Power and its arm over fake bank guarantees. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
