Following Anil Ambani-led Reliance Infra’s allegations of breach of terms, Adani Group has issued a statement rejecting the former’s arbitration claim of Rs 13,500 crore. The leading private retail electricity provider, called Reliance Infrastructure’s regulatory filing “an afterthought” and added that it is following due process as part of the share purchase deal.
A larger dispute?
Adani Group said that it will “present its own claims against R-Infra in the arbitration proceedings.”
The statement which said that the Reliance Infra’s claims are based on untenable positions, also added that, “Following due process, ATL/Adani Electricity rejected the R-Infra claim. In addition, ATL/Adani Electricity submitted that R-Infra has not yet settled AEML’s significantly larger claims under the SPA,”
Adani Group’s release also mentioned an arbitration initiated by Reliance Anil Dhirubhai Ambani Group on a specific issue with the agreement in 2021 with a Rs 500 crore claim.
The rise and rise of Adani
Adani Group had been in the power generation and transmission business before buying Reliance Infrastructure’s distribution business in Mumbai for Rs 18,800 crore in 2017. The deal made Adani a fully integrated retail electricity firm, and gave it a consumer-base of three million across Mumbai. Today it has six power plants in India with an installed capacity of more than 12000 megawatts, in addition to a solar power plant in Gujarat.
Earlier this month, Adani Group had generated positive market sentiment with its commitment to export power to Bangladesh from a power plant in Jharkhand and a dedicated transmission line.