Reliance Infrastructure Resolves ₹6,503 Crore Dispute with CPL

Reliance Infrastructure Limited has settled its dispute with CLE Private Limited (CPL) through mediation under the Bombay High Court. The resolution involves a total amount of ₹6,503.13 crore, bringing an end to the long-standing legal matter between the two companies.

Breakdown of the Settlement

As part of the settlement, ₹5,777.13 crore worth of assets and economic interests from CPL will be transferred to Reliance Infrastructure. Additionally, ₹726 crore, which was previously a decreed amount, will now be converted into a secured loan. The company has stated that the agreement includes standard legal provisions such as warranties and indemnities in its favor.

Mediation Process

The settlement was filed under the Mediation Act, 2023. Both parties submitted the agreement to the Bombay High Court’s mediation center. The company has confirmed that this is a full and final resolution of all claims and disputes between them.

No Related-Party Involvement

Reliance Infrastructure has clarified that it does not hold any shareholding in CPL, and the transaction does not qualify as a related-party transaction. The company also confirmed that the agreement does not involve any special rights related to shareholding, directorships, or capital structure changes.

Impact on Financials

The settlement allows Reliance Infrastructure to gain control over assets previously held by CPL, which could impact its financial position. However, the company has not disclosed how or when these assets will be utilized.

Company Overview

Reliance Infrastructure operates in the power, roads, and metro sectors with a focus on engineering, procurement, and construction (EPC) projects.

• YTD Price Performance: -10.18%
• Average Trading Volume: 201,794
• Market Capitalization: ₹113.4 billion

As of February 10, 11:37 AM, Reliance Infrastructure Ltd is trading at ₹288.70, up ₹2.20 (0.77%) today, showing a 27.71% gain over the past six months and a 42.74% rise in the past year.

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