Anil Ambani suffers major setback, Reliance Power shares fall, 3-year ban adds to woes

Reliance Power, the power generation arm of Anil Ambani's Reliance Group, has been dealt a major blow with the company's shares plummeting after the Central Electricity Regulatory Commission (CERC) imposed a three-year ban on the company from participating in power auctions.

The ban, which came into effect on Friday, March 3, 2023, prohibits Reliance Power from submitting bids for any new power projects or participating in any power auctions conducted by the Central or State governments for a period of three years.

The CERC's decision stems from a petition filed by the Adani Group, which had alleged that Reliance Power had violated bidding norms in the auction for a 800-megawatt (MW) thermal power project in Jharkhand.

The CERC, after examining the evidence presented by both parties, found that Reliance Power had indeed violated certain bidding norms, including failing to disclose its association with a disqualified bidder.

The ban is a major setback for Reliance Power, which has been struggling financially in recent years. The company has been facing mounting debt and has been trying to sell off assets to reduce its liabilities.

The ban is likely to further complicate Reliance Power's financial situation and could make it difficult for the company to attract new investors.