Informist, Tuesday, Jul. 8, 2025

NEW DELHI – The Delhi High Court on Tuesday asked Solar Energy Corp. of India Ltd. to not take any coercive action, like terminating the power purchase agreement, against Reliance NU Suntech Pvt. Ltd, till the court rules on the latter's petition. Seeking Solar Energy Corp.'s response on Reliance NU Suntech's plea, the high court placed the matter for hearing on Sep. 17.

Solar Energy Corp. and Reliance NU Suntech, a subsidiary of Reliance Power Ltd., entered into power purchase agreement in April. Later, in July, Solar Energy Corp. issued a show cause notice to Reliance NU Suntech, asking why they had not informed about the debarment of Reliance NU BESS, another Reliance Power arm, in a fake bank guarantee documents case by the respondent in another tender. In the fake bank guarantee case last year, the high court had stayed Solar Energy Corp.'s debarment order of Reliance Power and its subsidiary companies, except for Reliance NU BESS.

Such an allegation is absolutely perverse since the said show cause notice to Reliance NU BESS was issued by Solar Energy Corp. itself, Reliance NU Suntech said. The notice on the face of it is perverse and has been issued with a predetermined and premeditated mind, the company said. The show cause notice is clearly violative of Article 14 and 19 of the Constitution of India, it added.

Solar Energy Corp. was fully aware of the relationship between the petitioner, Reliance NU BESS and Reliance Power, knowing and being aware of all material facts and circumstances, the respondent correctly and consciously considered the petitioner to be eligible for the bid, said Reliance NU Suntech. As an afterthought, after having signed the power purchase agreement and taking a performance bank guarantee of INR 3.78 billion and success fees amounting to INR 100.40 million, Solar Energy Corp issued an illegal show cause notice, seeking to terminate the power purchase agreement, said the petitioner.

At 1416 IST, shares of Reliance Power were down 0.1% at INR 65.18 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Surya Tripathi

Edited by Ashish Shirke

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