Reliance Power shares plunge 5% as SECI bars firm from tenders over fake bank guarantees

Reliance Power Ltd.’s share price hit the 5% lower circuit on Friday after the government body leading the Solar Mission barred it from bidding in future tenders for three years, citing the submission of fake bank guarantees.

The Solar Energy Corporation of India Ltd. (SECI) made the decision following a bid by Reliance NU BESS for a 1,000 MW/2,000 MWh standalone battery energy storage system (BESS) project. SECI issued the tender for this project in June.

Upon review, SECI found that the bank guarantee endorsement submitted against the earnest money deposit by Reliance NU BESS Ltd.—previously known as Maharashtra Energy Generation Ltd.—was falsified.

SECI attributed the decision to a logical inference that all strategic and commercial decisions were driven by Reliance Power. "Thus, it became imperative to debar Reliance Power from participating in future tenders issued by SECI," the agency stated.

In response, Reliance Power announced its intention to legally contest SECI's decision, labelling it an "unwarranted action." The company claimed to be a victim of fraud, forgery, and criminal conspiracy and has filed a complaint with Delhi Police in October.

It assured shareholders that it would pursue all legal avenues to challenge SECI’s decision, considering the interests of its 4 million shareholders.

Shares of Reliance Power fell 5%, closing at ₹41.58 apiece on the NSE as of Friday morning, compared to a 0.1% drop in the benchmark Nifty 50 index. Over the past 12 months, the stock has gained 103%, with a 78% increase year-to-date. The relative strength index currently stands at 48.