RInfra serves notice to Pipapav Defence promoters for Rs 54.40 bn claims

Reliance Infrastructure (RInfra), along with its subsidiary issued an arbitration notice against founder promoters of Pipapav Defence and Engineering for claims aggregating to Rs 54.40 billion for breach of warranties under the purchase agreement.

On March 4, 2015, RInfra, its subsidiary Reliance Defence Systems (RDSPL) and the founder promoters of Pipapav Defence and Engineering entered an agreement for acquisition of shares of Pipapav Defence and Engineering, which is now being named Reliance Naval and Engineering Ltd (RNEL).

"The company, along with its subsidiary, RDSPL has issued an arbitration notice against Nikhil Gandhi, Bhavesh Gandhi and their companies, i.e. SKIL Infrastructure Ltd, Grevek Investments and Finance Pvt Ltd and SKIL Shipyard Holdings Pvt Ltd, all being the founder promoters of Pipapav Defence and Engineering Ltd... asserting the claims for breach of warranties under the purchase agreement dated March 4, 2015," Reliance Infrastructure said in a regulatory filing.

"The claims aggregate to Rs 54.40 billion," it added.

In March 2015, Anil Ambani-led Reliance Infrastructure announced the acquisition of controlling stake in Pipavav Defence and Offshore Engineering for up to Rs 20.82 billion.

Shares of Reliance Infrastructure were trading 0.66 per cent lower at Rs 438.80 on BSE.