Reliance Industries Downplays Penalty Reports, Confirms Ministry Letter on Liquidated Damages

Reliance Industries Limited (RIL) has brushed aside reports of possible penalties as small and not material to the movement in its stock price. But the company confirmed that its unit, Reliance New Energy, had received a letter from the Ministry of Heavy Industries imposing liquidated damages. This refers to delayed deadlines in establishing a battery cell factory under the Production Linked Incentive scheme of the government. Although RIL insists that the reported Rs 125 crore penalty would have little effect on its books, the official word from the ministry suggests regulatory action. The company blames recent stock volatility on general market trends and not on these particular issues.
Source: Reliance Industries Limited