Mumbai police's Economic Offences Wing (EOW) has started investigation into a case of alleged cheating and forgery against unnamed officials of the Chinese firm, Shanghai Electric Group Company Ltd, following a complaint by Reliance Infrastructure helmed by Anil Ambani.
The FIR was filed by Reliance Infrastructure vice-president (commercial) Neeraj Parakh, 52, at the Vakola police station on Wednesday. The probe has been taken over by the EOW. According to the FIR, a copy of which is with the Free Press Journal, Shanghai Electric Group forged the signature of Rajesh Agarwal, then vice-president of Reliance Infrastructure, and submitted it to the Singapore International Arbitration Centre where arbitration proceedings were underway between both the parties. The Chinese firm had made a claim of USD140.93 million (about Rs1,200 crore). Reliance Infrastructure alleged that Shanghai Electric used these fabricated documents during the arbitration proceedings, resulting in cheating.
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The FIR further said that between June 2008 and September 2020, the accused entity fabricated guarantee letters of Reliance Infrastructure for the Sasan Ultra Mega power plant in Madhya Pradesh and the Butibori power plant in Nagpur. In 2008, Sasan Power, a subsidiary of Reliance Infra, started building a power plant in the Sasan village of Madhya Pradesh. Similarly, Vidarbha Industries Power, another subsidiary, started work at the Butibori power plant.
These two firms gave the contract of equipment supply, construction and services for both the projects to Reliance Infra Projects (UK) Ltd, later renamed Oxagon Enterprises Ltd. The latter then subcontracted the work to Shanghai Electric, which supplied boilers, turbines and generators from 2008 to 2015. However, the subsidiary companies didn't pay Reliance Infra Projects (UK) and Shanghai Electric for the equipment supplied, citing defective products.
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The Chinese company then approached the Singapore International Arbitration Centre with the documents, including a letter of guarantee stating that Reliance Infra's predecessor, Reliance Energy, would pay the bills if the subsidiaries didn't. The complainant claimed that neither the board of Reliance Energy had given any powers to Rajesh Agarwal nor had he taken permission from the Reserve Bank of India for issuing the letters.
A case was registered against unknown officials of Shanghai Electric Group and other unknown people under the Indian Penal Code sections 420 (cheating), 465 (forgery). 467 (forgery of valuable security), 468 (forgery for cheating), 471 (using a forged document as genuine) and 120B (criminal conspiracy). Since the alleged offences were committed before Bharatiya Nyay Sanhita came into force on July 1, the IPC provisions have been invoked.
Highlights
Shanghai Electric Group forged signature of former VP
Submitted fabricated documents to Singapore International Arbitration Centre
Forgery took place between June 2008 and September 2020
From 2008 to 2015, the Chinese firm was given subcontract for power projects
It was not paid as it provided defective products
