Reliance Infra issues 5,440 Crore Arbitration Notice to Pipavav Defence and Engineering

March 5,2018:

On Monday, Reliance Infrastructure stated that 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.

Rinfra further added that,“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 purchase agreement for Pipavav Defence and Engineering in March 2015.

Post completion of acquisition, Pipavav Defence was renamed as Reliance Naval and Engineering .

In its statement to the exchange, RInfra said that the arbitration tribunal would be pursuant to SIAC, Singapore rules. SIAC is Singapore International Arbitration Centre.

Brief Facts:

Notice has been issued against Pipavav Defence founder-promoters Nikhil Gandhi (pictured) and Bhavesh Gandhi and their companies — SKIL Infrastructure, SKIL Shipyard Holdings and Grevek Investments and Finance

Notice pertains to breach of warranties under its March 2015 purchase agreement

In March 2015, R-Infra together with its wholly-owned subsidiary Reliance Defence Systems had agreed to acquire from the promoters of Pipavav Defence 13,00,00,000 equity shares representing 18 per cent shareholding in the company