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Reliance Infrastructure on Monday said it has issued an arbitration notice against founder-promoters of Pipavav Defence and Engineering for indemnity claims aggregating to Rs 54.40 billion.
The notice has been issued against Pipavav Defence founder- promoters Nikhil Gandhi and Bhavesh Gandhi and their companies namely SKIL Infrastructure, SKIL Shipyard Holdings and Grevek Investments and Finance, RInfra said in its statement.
“Notice has been issued for breach of warranties under purchase agreement by founder promoters for acquisition of Pipavav Defence shares,” Rinfra added in its statement.
RInfra singed the purchase agreement for Pipavav Defence and Engineering in March 2015.
Post completion of the acquisition, Pipavav Defence was renamed as Reliance Naval and Engineering .
In its statement to the exchange, RInfra said the arbitration tribunal would be pursuant to SIAC, Singapore rules. SIAC is Singapore International Arbitration Centre.