The Tata Power Company Limited (BSE:500400) wants banks to use the Swiss challenge method for sale of South East U.P. Power Transmission Company Limited, claiming it should be allowed to match the best offer because it had emerged as the highest bidder in a previous round, according to sources in the know. Tata had outbid Adani Enterprises Limited (BSE:512599) and three other players, all of whom submitted bids on October 30, 2021. However, banks set aside Tata's earlier offer because of certain conditions unacceptable to them and are now considering a rebid, said sources.

Tata's request may not be easy to implement as IBC regulations are silent on use of Swiss challenge as a method of bidding. Banks have sought legal opinion. Tata Power declined to comment.

According to the Swiss challenge method, the highest offer is used as the basis for conducting bidding. Competing bidders have to better the offer. However, the party that made the original offer gets to match the best bid.

Tata Power has bid for the company through its subsidiary Resurgent Power Ventures Pte. Ltd. Its offer of INR 30 billion was the highest at the time it's bid was made in October 2021. Sterlite Power Transmission Limited, REC Power Development and Consultancy Limited (REC PDCL) and Power Grid Corporation of India Limited (BSE:532898) of India had also submitted bids.