Delhi High Court Grants Relief to Reliance NU Suntech in SECI PPA Dispute

The Delhi High Court has directed that no coercive action be taken against Reliance NU Suntech Pvt. Ltd., a subsidiary of Reliance Power Ltd., in connection with a Show Cause Notice (SCN) issued by the Solar Energy Corporation of India (SECI) seeking termination of a recently signed Power Purchase Agreement (PPA).

The interim order was passed by the Court  in response to a writ petition filed by Reliance NU Suntech challenging the SCN dated July 1, 2025. The SCN questioned the continuation of the PPA dated April 30, 2025, for the development of 2,000 MW ISTS-connected solar PV power projects with 1,000 MW/4,000 MWh energy storage systems, awarded under SECI’s competitive bidding scheme.

According to the petitioner, the action stemmed from a previous SCN issued to another Reliance Power affiliate, Reliance NU BESS Pvt. Ltd. (RNBPL), in an unrelated project. That notice alleged submission of a forged bank guarantee, leading to debarment orders against both RNBPL and its parent, Reliance Power, in November 2024.

However, Reliance Power successfully challenged the debarment, and the order was withdrawn in December 2024 following a stay granted by the High Court. The petitioner argued that SECI was already aware of these proceedings and still went ahead to sign the PPA in April 2025, suggesting no concealment or misrepresentation had occurred.

Reliance NU Suntech submitted that the SCN issued to RNBPL should not be used as a basis to terminate the petitioner’s contract, as no transgressions or violations were committed by the petitioner itself. He also pointed out that Reliance NU Suntech had proactively disclosed all relevant information to SECI via a letter dated November 27, 2024.

On examining the tender clause and the Integrity Pact provisions, the Court observed that the requirement to declare previous transgressions applied only to the bidder or consortium members, not affiliates like RNBPL.

The Court issued notice to SECI and listed the matter for further hearing on September 17, 2025. In the meantime, the Court ordered no coercive action to be taken against the petitioner.