Anil Ambani’s Reliance Industries has filed a $1.7 billion arbitration case against Adani Transmission.
The company informed the BSE yesterday (Sept. 11) that it has filed a 13,400 crore rupees ($1.7 billion) claim before the Mumbai Center for International Arbitration for alleged “breach of terms” of the agreement involving the sale of its power distribution business in Mumbai. Gautam Adani company.
The 2017 deal involved the transfer of Reliance Infra’s—then Reliance Energy—power distribution business to Mumbai.
It was supposed to help Reliance Infra shed Rs15,000 crore of debt, taking the company to over Rs 3,000 crore, Times Now reported. The Rs18,800 crore deal also allows Adani to participate in retail energy distribution.
However, Reliance Infra has now said that the Adani Group breached the terms of an agreement dated December 2017. The company’s regulatory filing did not detail the alleged breach.
“The financial impact cannot be ascertained and depends on the final outcome of the arbitration and subsequent legal challenges,” Anil Ambani’s company said.