HC asks Delhi government, Center to help DMRC pay for RInfra

“The decision should be taken within a period of two weeks from today. If permission is granted in respect of either of the two methods suggested by the DMRC, it shall proceed to deposit the entire amount payable under the award along with updated interest within one month,” said a bench headed by Justice Yashwant Verma. Delhi Airport Metro Express, a unit of Reliance Infrastructure, approaches court to recover outstanding arbitration award 7,200 crores from DMRC.

The High Court said that if the Center and the Delhi government reject the request, then the Center should return all the funds received from the Delhi Metro after March 10, 2022. On receipt of the funds, Delhi Metro will transfer the balance amount to Reliance Infrastructure. , the court said.

If the DMRC fails to clear its dues, the court said it reserves the right to pass further appropriate directions against the Union ministry and the government of National Capital Territory of Delhi (GNCTD). On 18 January, the DMRC, in an attempt to pay dues, submitted before the High Court that it had requested the Delhi government and the Center to provide interest-free subordinated debt 3,565.64 crore each to clear its arbitration dues owed to the Delhi Airport Metro.

In 2017, Delhi Airport Metro Express Pvt. won ltd 4,500 crore arbitration award against DMRC. The arbitral tribunal accepted Delhi Airport Metro’s claim that it was not viable to run trains on the airport line due to structural defects in the viaduct constructed by the DMRC.

The Supreme Court in December directed the Delhi High Court to execute the arbitral award within three months Delhi Airport Metro Express wins Rs 7,200 crore against state-owned DMRC, an amount of Rs 2,600 crore has already been disbursed.