RInfra assures HC of not creating third-party rights over assets

Reliance Infrastructure Ltd Monday assured the Delhi High Court that it would not create any third party rights over assets worth over Rs 900 crore till January 27, in relation to a plea by Shanghai electric Group which has invoked arbitration proceedings against it.

The Anil Ambani's Reliance Infra had entered into an agreement with Shanghai Electric Group (SEG) for engineering and manufacturing of power plants.

The SEG invoked arbitration against Reliance Infra on account of its failure to pay for the purchased equipment.

Justice Rekha Palli recorded the assurance given by Reliance Infra's counsel that it will not create any third party rights over its assets worth over Rs 900 crore till Wednesday.

Earlier on January 19, the high court had asked R eliance Infra to maintain status quo regarding its shareholding in two Delhi power distribution companies, BSES Yamuna Ltd and BSES Rajdhani Ltd.

The arbitration was involved as per Singapore International Arbitration Centre (SIAC) rules to claim around Rs 995 crore for the alleged default by the Reliance Infra.