Reliance Infra Claims 13,400 Crores On Adani Transmission
Reliance Infra claims 13,400 crores on Adani Transmission, alleging breach of the agreement.
The dispute between Anil Ambani’s Reliance Infrastructure Ltd. and Adani Transmission Ltd. is deepening.
Reliance Infrastructure Ltd has filed a Rs 13,400 crore ($1.7 billion) claim against Adani Transmission Ltd for flouting an offer to acquire the power distribution business and breaching the terms of the deal.
In a regulatory filing, Reliance Infrastructure said it has filed an arbitration claim before the Mumbai Center for International Arbitration (MCIA).
The company alleges that the terms of the December 2017 share purchase agreement with Adani Transmission relating to the transfer of the Mumbai power distribution business have been violated.
The Mumbai International Arbitration Center (MCIA) aims to settle commercial disputes.
What will happen to this deal now?
The financial implications behind this are not ascertainable and the deal is now dependent on the final outcome of the arbitration and subsequent legal challenges said the filing by Reliance Infrastructure Ltd.
Let us tell you that the condition of Reliance Infrastructure is very bad these days.
On Friday, shares of Reliance Infrastructure closed 9.90 percent lower at Rs 162.45 on the BSE, while shares of Adani Transmission rose 0.18 percent to Rs 3,931.65.
The agreement was signed in 2017.
The Adani Group had acquired the Mumbai power business of Reliance Infra (erstwhile Reliance Energy), which included generation, distribution, and transmission, in a deal worth Rs 18,800 crore in 2017.
The deal helped the Adani Group gain a foothold in the power distribution business. After this, the Adani group became famous for power generation as well as transmission.
At present Adani Transmission is India’s largest private sector transmission and power distribution company.
Let us tell you that Reliance Energy had about 30 lakh consumers in Mumbai. The deal would have helped Reliance Infra repay its debt of Rs 15,000 crore.
Even after the acquisition, the company would have had a surplus of Rs 3,000 crore.
