New Delhi: The Delhi High Court has restrained Solar Energy Corporation of India (SECI) from taking any coercive action against Reliance NU Suntech Private Limited, a subsidiary of Reliance Power, in connection with a show-cause notice issued for terminating its power purchase agreement (PPA). The court has ordered a status quo until further hearing on September 17.
Reliance NU Suntech moved the court on July 8, challenging SECI’s show-cause notice dated July 1 that questioned why the PPA executed between the two parties on April 30, 2025 should not be terminated. The agreement relates to a 2,000 MW interstate transmission system (ISTS)-connected solar photovoltaic power project with 1,000 MW/4,000 MWh energy storage capacity, awarded under tariff-based competitive bidding.
Reliance Nu submitted its bid on September 30, 2024 in response to SECI’s request for selection issued on July 31, 2024 and furnished a performance bank guarantee of Rs 378 crore prior to executing the PPA.
SECI’s termination move stemmed from prior action against Reliance NU BESS Pvt Ltd (RNBPL), another Reliance Power affiliate, which had been accused of furnishing a forged bank guarantee in a separate tender. That led to SECI issuing debarment orders against Reliance Power and RNBPL in November 2024, though the debarment of Reliance Power was stayed by the High Court on November 26, 2024 and later withdrawn on December 3, 2024. No interim relief was granted to RNBPL.
SECI argued that Reliance NU Suntech failed to fully disclose this background when submitting its bid, despite being an affiliate of the debarred company.
In his order, Justice Manoj Kumar Ohri noted that on a prima facie reading of the tender clauses and integrity pact, the disclosure requirements applied only to the bidder or consortium members — not to affiliates like RNBPL, which had no direct role in the bid.
Senior advocate Mukul Rohatgi, appearing for the petitioner, submitted that the company had not concealed any facts, had no knowledge of the show-cause notice to RNBPL when submitting its own bid, and had voluntarily informed SECI of the developments later via a letter dated November 27, 2024.
He also pointed out that SECI had issued a cautionary email before the PPA was signed, clearly indicating its awareness of the prior issues involving RNBPL.
The court observed that the issue warrants further consideration and granted interim protection to the petitioner. It directed SECI not to act on the impugned notice or take any coercive steps until the matter is heard again on September 17.
