Reliance Power has been notified that the Export Import Bank of the United States (US Exim) has filed an application under the Insolvency and Bankruptcy Code (IBC) regarding an alleged debt default by its subsidiary, Samalkot Power Limited (SPL). The claim involves a net debt of US$ 165.41 million. The company maintains the application is not legally tenable and intends to contest the matter vigorously.
Background of the Dispute
The conflict centers on a debt obligation linked to Samalkot Power Limited (SPL), a subsidiary of Reliance Power, for which the parent company serves as a guarantor. On April 29, 2026, it was disclosed that US Exim has initiated proceedings to recover US$ 165.41 million in alleged defaulted debt.
Ongoing Legal Proceedings
Reliance Power asserts that the matter is currently sub judice. Previously, on June 29, 2025, Samalkot Power filed a formal application before the London Court of International Arbitration against US Exim and Citibank N.A. The subsidiary contends that the debt is not currently due for payment. Because this international arbitration is already underway, the company has characterized the new IBC filing as legally meritless.
Company Stance and Next Steps
Management has stated that they are prepared to defend the company’s interests through all available legal avenues. Reliance Power emphasized that it will take all appropriate steps to protect its position, remaining firm that the claims made in the recent application do not hold legal standing due to the ongoing dispute regarding the debt’s maturity.
Source: BSE
