Reliance Power Subsidiaries Withdraw Plea from Bombay HC Challenging Downgrade by CARE Ratings
Moneylife Digital Team 01 April 2026
The Bombay High Court on Wednesday allowed the withdrawal of a writ petition filed by Rosa Power Supply Company Ltd, a subsidiary of Reliance Power Ltd (R-Power), challenging a credit rating downgrade by CARE Ratings Ltd, after the company opted to pursue arbitration as per its contractual agreement.
 
The petition, filed under Article 226 of the Constitution, came up for hearing before a division bench of justice RI Chagla and justice Advait M Sethna. When the matter was called, counsel for Rosa Power informed the Court that the company wished to withdraw the plea and seek a remedy through arbitration in accordance with the rating agreement.
 
The bench permitted the withdrawal and clarified that it had not examined the merits of the case.
 
Rosa Power had approached the Court challenging CARE Ratings’ decision to downgrade the credit rating of its borrowings from Power Finance Corporation Ltd (PFC) from BBB-(RWD) to BB+(RWD). The downgrade was reflected in rating reports dated 11th February and 19 February 2026, as well as in a public release issued by the rating agency.
 
The company had also sought interim relief to restrain PFC from taking any adverse action based on the downgraded rating.
 
A similar writ petition filed by Sasan Power Ltd—also a wholly owned subsidiary of R-Power—is listed alongside and withdrawn on identical grounds.
 
Both petitions had questioned the downgrade which was reportedly linked to ongoing proceedings involving investigative agencies such as the directorate of enforcement (ED), central bureau of investigation (CBI) and the economic offences wing (EOW).
 
Legal representation in the matter included senior counsel Sharan Jagtiani appearing for the petitioners, while advocate Joby Mathew represented CARE Ratings. Additional solicitor general (ASG) Anil Singh appeared on behalf of Power Finance Corporation.
 
With the withdrawal of the petitions, the dispute is now expected to shift to arbitration proceedings, in line with the contractual dispute resolution mechanism agreed upon between the parties.
Comments
david.rasquinha
1 week ago
Absurd that this case even reached the judiciary. A rating is a commercial decision and not something subject to judicial challenge, especially when the arbitration remedy was always available.
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