Reliance Infra issues arbitration notice worth Rs 5,440 crore

File photo. Photograph:( Reuters )

WION Web Team Delhi, India Mar 05, 2018, 07.12 AM (IST)

Reliance Infrastructure and its subsidiary Reliance Defence Systems Private Limited (RDSPL) have issued an arbitration notice against the promoters of Pipavav Defence and Engineering. Reliance Infrastructures have alleged a breach of warranties worth Rs 5,440.38 crore under their purchase agreement.

An arbitration notice has been issued against Nikhil Gandhi, Bhavesh Gandhi and their companies, SKIL Infrastructure Ltd, Grevek Investments and Finance Pvt Ltd and SKIL Shipyard Holdings Pvt Ltd -- the founder promoters of Pipapav Defence and Engineering Ltd. 

In March 2015 Reliance Infrastructure acquired a controlling stake of Pipavav Defence.