2017 power deal: Adani questions RInfra’s arbitration claim

BL Mumbai Bureau Updated - September 12, 2022 at 08:39 PM.
Adani said the claims made by RInfra “are afterthoughts and based on untenable positions”. | Photo Credit: SHAILESH ANDRADE

Adani Transmission on Monday dismissed claims made by Reliance Infrastructure Ltd (RInfra) with respect to the 2017 deal under which Adanis had acquired the Mumbai power business from the Anil Ambani-backed company.

This comes after Reliance Infrastructure said on Friday that it has filed an arbitration claim of ₹13,400 crore against the Adani Group in the Mumbai Centre for International Arbitration (MCIA).

Breach of agreement

Reliance cited a breach of a December 2017 share purchase agreement relating to the transfer of its Mumbai power distribution business to Adani Transmission, in a ₹18,800-crore deal. Adani said the claims made by RInfra “are afterthoughts and based on untenable positions”.

According to Adani, Reliance Infra had initiated arbitration on one specific dispute under the Share Purchase Agreement (SPA) in December 2021. This was a claim for ₹500 crore. “Following due process, ATL/Adani Electricity rejected the RInfra claim. In addition, ATL/Adani Electricity submitted that RInfra has not yet settled AEML’s significantly larger claims under the SPA. This year, in February and August, RInfra filed supplementary arbitration requests, raising additional disputes and claims. In our view, these are afterthoughts and based on untenable positions,” Adani Transmission said in a statement.

Published on September 12, 2022 14:21

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