Reliance Infrastructure Ltd. (R-Infra), a division of the Reliance Anil Dhirubhai Ambani Group, filed an arbitration claim for Rs 500 crore with Adani Transmission, according to a press release issued on September 12; the claim was related to a disagreement regarding the share purchase agreement (SPA) in December 2021.
“In December 2021, Reliance Infrastructure Ltd (R-Infra), a member of the Reliance Anil Dhirubhai Ambani Group, filed an arbitration request under the Share Purchase Agreement (SPA) about a particular dispute. This was a $500 billion claim. ATL/Adani Electricity denied the R-Infra claim after following the law “stated Adani Transmission.
Adani Transmission was reacting to complaints Reliance Infra had made to the stock exchanges on September 9 over the former’s power deal with the latter.
In its filing on September 9, Reliance Infrastructure wrote, “The financial impact cannot be predicted and would depend on how the arbitration and related legal proceedings turn out.
Additionally, Adani Electricity Mumbai Limited’s (AEML) much greater claims under the SPA have not yet been resolved, according to ATL/Adani Electricity’s submission.
Adani Transmission responded to the arbitration claims made by Reliance Infrastructure by claiming that they are based on “untenable positions.”
According to the company’s media release: “R-Infra submitted supplemental arbitration requests this year in February and August, bringing up new disputes and claims. These, in our opinion, are afterthoughts based on flawed premises.”
In its statement regarding the arbitration issue, Adani Transmission added that ATL/Adani Electricity is adhering to the share purchase agreement’s (SPA) requirements for dispute resolution and will present its own claims against R-Infra in the arbitration hearing.
Shares of Adani Transmission Ltd. closed the day on September 12 at Rs 4005.85, up 1.89% (or 74.20 points), whereas shares of Reliance Infrastructure ended the day at Rs 174.10, up 7.17% (or 16.65 points).