A Delhi High Court order has asked Reliance Infrastructure Ltd. to maintain status-quo over its shareholding in two power distribution companies, BSES Rajdhani Power Ltd. and BSES Yamuna Power Ltd. The Anil Ambani promoted company owns 51% stake in both the firms and has reportedly been looking for buyers since mid-2020.
The order pertains to an application filed by Shanghai Electric Group Co. that has asked Rs 995 crore from Reliance Infrastructure to be deposited in the court’s account as security. Trilegal, the law firm representing Shanghai Electric, has confirmed the court’s status quo direction, whereas Reliance Infrastructure has sought time till the written court order is published by the court.
The status quo remains in effect till the next hearing.
Shanghai Electric had filed an application under section 9 of the Arbitration and Conciliation Act, 1996, seeking that Reliance Infrastructure furnish security by depositing Rs 995 crore approximately in an court-run account. This, it said, was the minimum payable by the Ambani-promoted company in an arbitration pending before the Singapore International Arbitration Centre.
In that application Shanghai Electric had also sought:
That Reliance Infrastructure disclose on affidavit, details of all of its assets as on June 26, 2008, in India and outside and detail whether any encumbrance has been created on them.
That Reliance Infrastructure disclose on affidavit any and all ongoing transactions entered into for sale of its assets, which could pose a threat to the realisation of monies likely to be awarded to the petitioner in the ongoing arbitration.
In response to the petition filed in December, Reliance Infrastructure’s lawyer told the Delhi High Court that the petition by Shanghai Electric is not maintainable. The court has not yet ruled on the maintainability of the petition as per the available information.