SECI Issues Show-Cause Notices To Reliance Power And Reliance NU BESS Over Alleged Fake Bank Guarantees

SECI has issued show-cause notices to M/s Reliance Power Ltd. and M/s Reliance NU BESS Ltd. for allegedly submitting fake bank guarantees. The notices follow debarment actions taken against these companies due to the submission of a forged endorsement of a foreign bank guarantee as part of their bid. During SECI’s investigation, it was found that the bank guarantee (BG) submitted by M/s Reliance NU BESS Ltd., previously operating as M/s Maharashtra Energy Generation Ltd., was fraudulent. The bidder presented a BG reportedly issued by FirstRand Bank, through a branch claimed to be in Manila, Philippines. However, an inquiry with FirstRand Bank’s Indian branch confirmed that no such branch exists in the Philippines, leading SECI to conclude that the BG was fabricated.

SECI determined that this repeated submission of a fake BG and its counterfeit endorsement reflects a deliberate attempt by the bidder to distort the tendering process and obtain the project under false pretenses. SECI views this as an act of bad faith aimed at influencing the outcome improperly. Moreover, SECI concluded that these actions also implicate the bidder’s parent company, which had provided financial support to meet the tender’s qualification criteria. This connection makes the parent company equally liable for the alleged misconduct.

In light of these findings, SECI has formally issued show-cause notices to M/s Reliance Power Ltd. and M/s Reliance NU BESS Ltd., seeking an explanation for their actions. SECI has warned of possible criminal proceedings in response to the alleged fraudulent and forged activities. The companies are required to respond to the notices, detailing their position on the matter, as SECI considers further steps based on the companies’ responses.