The 2017 deal involved the transfer of Reliance Infra ’s—formerly known as Reliance Energy—Mumbai power distribution business.
Anil Ambani’s Reliance Infrastructure has filed a $1.7 billion arbitration claim against Gautam Adani’s Adani Transmission.
The company informed on Tuesday that it had filed the 13,400 crore rupees ($1.7 billion) claim before the Mumbai Centre for International Arbitration for an alleged “breach of terms” in a deal involving the sale of its Mumbai power distribution business to Gautam Adani’s company.
The 2017 deal involved the transfer of Reliance Infra’s—formerly known as Reliance Energy—Mumbai power distribution business.
It was supposed to help Reliance Infra shed Rs15,000 crore in debt, leaving the company with an excess of Rs 3,000 crore, according to a Times Now report. The Rs18,800 crore agreement also allowed Adani to foray into retail electricity distribution.
Also Read:“What If Bengal Used Bhogiji’s Model?: Mahua Moitra Responds To Alleged Violence By BJP Workers
However, Reliance Infra has now alleged that the Adani group entity had breached the terms of an agreement dated December 2017. The company’s regulatory filing hasn’t elaborated on the alleged breach.
“The financial implication cannot be ascertained and is contingent upon the final outcome of the arbitration and subsequent legal challenges,” Reliance Infrastructure said.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
