Reliance Infrastructure arm SU Toll Road goes into insolvency

State Bank of India (SBI) has initiated insolvency proceedings against SU Toll Road Private Limited (SU Toll Road), a wholly-owned subsidiary of Anil Ambani-led Reliance Infrastructure Ltd. (R Infra), by filing a petition with the Mumbai bench of the National Company Law Tribunal (NCLT). The regulatory disclosure, made by Reliance Infrastructure on December 12, 2025, reveals that SBI is seeking a claim amount of ₹358.70 crore, which includes interest.

SU Toll Road, incorporated in March 2007, is a special purpose vehicle (SPV) established by Reliance Infrastructure to undertake the financing, design, building, and operation of a 136-kilometer, four-lane toll road project. This project connects Salem (0.313 km) and Ulundurpet (136.67 km) on National Highway 68 in Tamil Nadu, a crucial corridor linking Coimbatore and Chennai.

The project was awarded to Reliance Infrastructure by the National Highway Authority of India (NHAI) on a Build, Operate, and Transfer (BOT) basis, with a concession period of 25 years commencing from January 15, 2008. Notably, Reliance Infrastructure was the sole bidder for the project and received a substantial positive grant of ₹366.05 crore from NHAI. Of this, ₹212.26 crore was received during the construction phase, and the remaining ₹153.79 crore was to be disbursed during the operational period.

While the scheduled Commercial Operation Date (COD) was January 16, 2011, the project faced delays primarily due to the late handover of the Right of Way (RoW) by NHAI and subsequent delays in the 3D Gazette Notification. Consequently, partial COD was achieved on July 28, 2012, for 90.91 km (covering two out of three toll plazas), and complete COD was attained on August 28, 2013.

This development comes at a time when another entity within the erstwhile Anil Ambani group, Reliance Infrastructure Consulting & Engineers Private Limited, recently saw its resolution plan approved by the same Mumbai NCLT bench. The ₹1.05-crore plan, submitted by Manoj Kumar Upadhyay of ACME Cleantech, was unanimously approved by the Committee of Creditors (CoC).

The Anil Ambani group, which has witnessed a significant erosion of its once vast business empire spanning telecom, defence, finance, and infrastructure, has recently asserted a turnaround in the fortunes of its remaining functional entities, Reliance Infrastructure and Reliance Power. The group has claimed that these companies are on the verge of becoming net debt-free, citing long-term fundraising plans involving preferential share issuance to promoter and non-promoter shareholders, including two new investors.

The Anil Ambani group announced ambitious debt reduction and fundraising plans between September 18 and 23. These included a ₹1,100 crore investment by the promoter group in Relinace Infra, a ₹6,000 crore fundraising plan via preferential issue and QIP for RInfra, and a ₹1,525 crore fundraising plan for Reliance Power.

RInfra’s ₹6,000 crore fund infusion is expected to come from Anil Ambani himself (₹1,200 crore), fund managers like Mathew Cyriac’s Florintree Innovation (₹1,800 crore), and qualified institutional buyers (₹3,000 crore). This would significantly reduce RInfra’s debt from ₹3,831 crore to ₹475 crore by clearing dues to lenders like LIC, Edelweiss ARC, ICICI Bank, and Union Bank. However, the source of these funds remains unclear, given the company’s accumulated losses.

Similarly, Reliance Power claimed to have fully settled a ₹3,872 crore guarantee for Vidarbha Industries Power and its subsidiary Rosa Power prepaid ₹850 crore to Varde Partners, again without disclosing the funding source.

Also See: ACME Cleantech buys another Anil Ambani-promoted company Reliance Infrastructure Consulting & Engineers