Reliance Infrastructure starts Rs 5,440 cr arbitration against Pipavav founders

Anil Ambani Group controlled Reliance Infrastructure said it has issued a notice of arbitration against the founders of Pipavav Defence and Engineering Limited seeking Rs 5,440 cr for “breach of warranties”.

Reliance Infrastructure emerged as the biggest shareholder in Pipavav Defence and Engineering Limited in 2015, and subsequently renamed it to Reliance Naval and Engineering Limited.

It is currently listed as the only promoter of the company and controls about 31% of the shares of the defence and shipping contractor.

The company did not clarify what the warranties it was seeking to enforce related to.

“The Company, along with its subsidiary, Reliance Defence Systems Private Limited (RDSPL), has issued an Arbitration Notice against Shri Nikhil Gandhi, Shri Bhavesh Gandhi and their Companies i.e. SKIL Infrastructure Limited, Grevek Investments and Finance Private Limited and SKIL Shipyard Holdings Private Limited, all being the founder promoters of Pipavav Defence and Engineering Limited now named Reliance Naval and Engineering Limited (RNEL), asserting the claims for breach of warranties under the Purchase Agreement dated March 4, 2015 entered between the Company, RDSPL and the said founder promoters for acquisition of shares of RNEL,” it said.