Synopsis
Reliance Infrastructure on 9 September filed an international arbitration claim of Rs 13,400 crore ($1.7 billion) against Adani Transmission Ltd, before the Mumbai Centre for International Arbitration (MCIA). In a regulatory filing, Adani Transmission said it will respond with facts and present its own claims against R-Infra in the arbitration
Adani Transmission on Monday said it is following the due process laid out under the share purchase agreement (SPA) for dispute resolution with Anil Ambani Group's Reliance Infrastructure (R-Infra).
In a regulatory filing, Adani Transmission said it will respond with facts and present its own claims against R-Infra in the arbitration proceedings.
R-Infra on 9 September filed an international arbitration claim of Rs 13,400 crore ($1.7 billion) against Adani Transmission Ltd, before the Mumbai Centre for International Arbitration (MCIA).
In a regulatory filing R-Infra said the arbitration claim is over what is described as the breach of the terms of its December 2017 share purchase agreement with Adani Transmission related to the transfer of its Mumbai power distribution business. The company did not disclose the nature of the alleged breach of contract.
"R-Infra initiated arbitration on one specific dispute under the share purchase agreement (SPA) in December 2021. This was a claim for Rs 500 Cr. Following due process, ATL/Adani Electricity rejected the R-Infra claim," Adani Transmission said in a statement, adding that R-Infra has not yet settled AEML’s 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," Adani Transmission said.
On Monday, Adani Transmission Ltd's scrip ended at Rs 4005.85, up 1.89% on the BSE while Reliance Infrastructure's scrip ended at Rs 174.10, up 7.17%.
The Adani group in 2017, had acquired R-Infra's (then Reliance Energy) Mumbai power business including generation, distribution and transmission, in a Rs 18,800-crore deal.
The deal gave Adani group a foothold in the distribution business helping it transition from a generation-and transmission company into a fully integrated power utility. Adani Transmission is India's largest private sector transmission and power distribution entity.
The deal was intended to help Reliance Infra retire its Rs 15000 crore debt.
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