The Securities and Exchange Board of India (SEBI) the market guardian has always tried its best to enforce strict regulations to prevent fraud and protect investor interests in India’s financial markets.
Through stringent compliance requirements and constant monitoring, SEBI ensures transparency and accountability across stock exchanges and market participants. The regulatory body actively investigates suspicious activities, imposes penalties on violations, and mandates corrective actions to uphold market integrity.
SEBI also introduces regular audits and promotes corporate governance standards to discourage malpractice. By fostering an environment of trust and security, SEBI plays a crucial role in safeguarding investors, reducing market manipulation, and promoting a fair, efficient financial ecosystem.
SECI Debars Reliance Power Subsidiary Over Alleged Fake Bank Guarantee
The Solar Energy Corporation of India (SECI) announced that it has barred Reliance NU BESS, formerly known as Maharashtra Energy Generation, from participating in SECI tenders for three years. SECI revealed that an examination of documents for a recent project showed the Bank Guarantee against Earnest Money Deposit (EMD), submitted by the bidder and issued by a foreign bank, was allegedly fake, thus failing the tender requirements.
Tender Process Annulled Post-Discovery
Following this alleged discovery, SECI stated it was compelled to annul the tendering process, which occurred after the e-Reverse Auction had already taken place. According to SECI’s tender conditions, submitting a falsified document in response to the Request for Selection (RfS) justified the bidder’s debarment from future tenders.
Reliance Power’s Role and Strategic Influence
As a subsidiary of Reliance Power, Reliance NU BESS had met financial qualifications through the parent company’s financial support. SECI’s detailed examination suggested that all commercial and strategic decisions made by the bidder appeared to be influenced by Reliance Power. This debarment could significantly impact Reliance Power’s future in India’s renewable energy sector, where SECI is a major procurement body for large-scale renewable and energy storage projects.
Also read…
Clarification from Reliance Power Management
- 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
Share Price
The shares of Reliance Power Limited cracked 5% to hit the lower circuit after allegations of fraud by the company were unveiled. Currently, the shares of the company are trading at Rs. 41.58 as compared to the previous close of Rs. 43.77
About the Company
Reliance Power, a subsidiary of Reliance Group, is a leading energy company in India with a diversified portfolio spanning thermal, solar, wind, and hydroelectric power. Reliance Power operates large-scale power generation projects across the country. Its initiatives include ultra-mega power plants, renewable energy ventures, and innovative energy solutions to reduce carbon emissions.
With a strong emphasis on sustainable growth, the company aims to expand its presence in the renewable energy sector, contributing to India’s energy security and supporting the country’s transition toward greener, cleaner energy sources.
Written By: Dipangshu Kundu
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
