Five years after selling its Mumbai power distribution business, Anil Ambani-led Reliance Infrastructure has approached the Mumbai Centre for International Arbitration against Adani Transmission. The firm has filed an arbitration claim of Rs 13,500 crore against Adani’s power distribution arm over breach of terms of a December 2017 share purchase deal.
The deal that charged up Adani’s power biz
Reliance Infrastructure’s power business including generation, transmission and distribution in Mumbai were transferred to the Adani Group for Rs18,800 crore. At the time Reliance Energy catered to three million consumers in Mumbai, including people in suburbs up to Bhayander.
The agreement allowed Adani to foray into retail electricity distribution, and turn into a fully integrated power firm. It went on to become India’s leading private sector power transmission and distribution company, with a market cap of more than Rs1.3 trillion.
Further details awaited
According to Reliance Infrastructure, the financial implications can only be ascertained after the outcome of the arbitration in the MCIA, and legal challenges that follow. The company hasn’t disclosed further details about the alleged breach of contract by the Adani Group.
Adani Group was also in the race to take over debt laden Reliance Capital of the Anil Ambani Group, but pulled out in June 2022 towards the end of the firm’s bankruptcy proceedings.
Reliance Infra’s stock registered a 1.92 per cent rise to touch Rs 171.90 on Monday, while Adani Transmission dropped 0.20 per cent to hit Rs 3923.