Reliance Power In Dock: After Fake Endorsement, SECI Flags 'Fake Bank Guarantee'

Solar Energy Corp. — the government body in-charge of implementing the National Solar Mission — has issued a show-cause notice to Reliance Power Ltd. for allegedly providing a fake bank guarantee for its recent bid, according to an exchange filing on Thursday.

The show-cause notice comes a week after the SECI barred the Anil Ambani-led power firm, along with its subsidiaries, from submitting bids in future tenders for providing a "fake endorsement" for its bank guarantee.

In the show-cause notice dated Nov. 13, SECI claimed that not only the endorsement, but the bank guarantee itself was also fake.

The bid was submitted by Reliance NU BESS, a subsidiary of Reliance Power, for the setting up of 1,000 MW/2,000 MWh standalone BESS projects. The tender for the project was issued by SECI in June.

"The bidder had submitted a bank guarantee purportedly issued by the FirstRand Bank, through its branch supposed to be located in Manila City, Manila, Philippines," SECI stated. "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 bank guarantee submitted was a fake document."

The submission of a fake bank guarantee 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, the notice said. "This conduct demonstrates a malafide intent to manipulate the outcome."

SECI in its notice, asked Reliance Power and Reliance NU BESS to explain why it "should not initiate criminal proceedings against them, in view of the fraudulent and forged actions".

While the bid was submitted by Reliance NU BESS, SECI indicated that it may also initiate criminal proceedings against Reliance Power, which provides the financial backing to the bidder.

"It is concluded that the actions of the bidder implicate the parent company, which had provided its financial strength to the bidder, enabling it to meet the qualification requirements for the tender," SECI said. This makes Reliance Power equally accountable in this matter, it added.

Last week, NDTV Profit learnt from persons privy to the matter that the endorsement to the bank guarantee in Reliance NU BESS' bid was provided through the following email ID: 'sbi.17313@s-bi.co.in'. Finding the email suspicious, SECI initiated an investigation into the matter and found the email address to be fake.

In its defence, Reliance Power said the company and its subsidiaries had "been a victim of fraud, forgery and cheating conspiracy". The company, which has blamed a third-party arranger for the fake documents, has registered a case with the Delhi Police.

"A criminal complaint in this regard has already been lodged with Economic Offence Wing of Delhi Police against the third party on Oct. 16, 2024," it said. On the basis of the complaint, a first information report or FIR was registered on Nov. 11, it added