Sindicatum to sue Orient Green Power $5 mn for contract breach

Singapore-based green energy firm Sindicatum Captive Energy on Monday announced its intent to take legal action against Orient Green Power, claiming $5 million compensation for breach of contract on an agreement signed earlier to acquire its 20 MW power project in Maharashtra.

"In October 2015, Sindicatum entered into a legally binding document to acquire Orient Green Power (Maharashtra) Pvt Ltd (OGPML). In terms of the arrangement, OGPML, a wholly owned subsidiary of OGPL, was to own and operate a 20 MW co-generation power project in Kolhapur, Maharashtra," Sindicatum said in a statement here.

"A definitive Share Purchase Agreement between Sindicatum and OGPL was also executed in December 2016," it said.

However, through a press statement made earlier this month, OGPL sought to cancel its contract with Sindicatum "on the basis that a third-party has decided to exercise an alleged first right of refusal in respect of OGPML".

Sindicatum said: "OGPL and its senior officers materially and repeatedly breached various representations, warranties and undertakings under the Share Purchase Agreement with Sindicatum."

Elaborating on the share purchase agreement, its Managing Director (India) Devin Narang said that OGPL, through its Maharashtra subsidiary, had originally taken over the "co-generation" of the 20 MW power plant of the D.Y. Patil Sugar Mills at Kolhapur on a build-operate-transfer (BOT) basis. The total equity of this BOT had been acquired by Sindicatum through the share purchase agreement.

OGPL subsequently made a stock exchange filing withdrawing from the share purchase agreement, Narang added.

--IANS

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