Days after Reliance Infrastructure Ltd (R-Infra), part of the Reliance Anil Dhirubhai Ambani Group, initiated arbitration on one specific dispute under the Share Purchase Agreement (SPA) in December 2021, the Adani Electricity Ltd (ATL) rejected the former’s claim. It has clearly said that the claim was for Rs 500 crore and not Rs 13,400 crore as reported.
ATL in a statement said, ‘’Following due process, ATL/Adani Electricity rejected the R-Infra claim. In addition, ATL/Adani Electricity submitted that R-Infra has not yet settled Adani Electricity Mumbai Ltd’s (AEML) significantly larger claims under the SPA. This year, in February and August, R-Infra filed supplementary arbitration requests, raising additional disputes and claims. In our view, these are afterthoughts and based on untenable positions.’’
‘’ATL/Adani Electricity is following the due process laid out under the SPA for dispute resolution and will respond with facts and present its claims against R-Infra in the arbitration proceedings,’’ it said.
Reliance Infra has filed an arbitration claim of Rs 13,400 crore against Adani Group in the Mumbai Centre for International Arbitration (MCIA). Reliance Infra had cited a breach of a December 2017 share purchase agreement relating to the transfer of its Mumbai power distribution business to Adani Transmission. ‘’The financial implication cannot be ascertained and is contingent upon the outcome of the arbitration and subsequent legal challenges,” the Anil Ambani Group company said in a filing with the stock exchanges on Friday.
Adani Electricity Mumbai Limited (AEML) is engaged in electricity distribution and is a 100% subsidiary of Adani Transmission Ltd to provide integrated facilities for the generation, transmission, and distribution of electricity in Mumbai. Presently the company is serving 3 million customers spread across 400 sq km in Mumbai and its suburbs meeting close to 2,000 MW of power demand.
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