The Export Import Bank of the United States (US Exim) has dragged Anil Ambani Group company Reliance Power Ltd. to bankruptcy court in India for alleged default of debt worth $165.41 million by subsidiary Samalkot Power Ltd. that was guaranteed by the parent. The bank has filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016 against the company, Reliance Power said in a stock exchange filing late on Wednesday.
Section 7 allows financial creditors to initiate the Corporate Insolvency Resolution Process (CIRP) against a corporate debtor before the National Company Law Tribunal when a default of at least Rs 1 crore occurs. It is a mandatory, non-discretionary process, requiring the adjudicating authority to admit the application if a debt and default are established.
Reliance Power said SPL has already filed an application on June 29, 2025, before the London Court of International Arbitration against US Exim and Citibank N.A. (Facility Agent) on the ground that the debt is not due and the same is pending for adjudication. The public disclosure was made in July 2025.
"The company has been advised that the present application is not legally tenable and shall be appropriately contested. The company will take all appropriate steps, as legally advised, to protect its interest in the aforesaid matter," the filing said.
Anil Ambani Group companies are being investigated by the Enforcement Directorate on charges of alleged bank fraud and diversion of funds.
Shares of Reliance Power are down 27% in the last 12 months and 16% year-to-date. The stock settled 1.9% lower on the NSE on Wednesday, ahead of the announcement.
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