IL&FS gets Rs 1,925cr from Haryana govt in Gurgaon Metro Project case

Infrastructure Leasing & Financial Services Limited (IL&FS), an Indian infrastructure development and finance company, said that it has received an interim termination payment of INR 1,925 crore from Haryana Shehari Vikas Pradhikaran (HSVP) in connection with the Gurgaon Metro Project case.

According to the company, the payment is in compliance with the Supreme Court’s order in March 2021 that ruled in favor of IL&FS in the Gurgaon Metro Project.

The metro project in Gurgaon was developed through ILFS subsidiaries and special purpose vehicles (SPVs) – Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL).

As per the Supreme Court’s order, appropriation of any amount from the escrow accounts will be subject to further orders of the NCLAT or any other competent legal authority, which will be complied with duly by IL&FS.

IL&FS gets Rs 1,925cr from Haryana govt in Gurgaon Metro Project case. Photo courtesy of Ajaydeshwal1994/Wikipedia.org.

The Supreme Court in its order had asked Haryana Shehari Vikas Pradhikaran to deposit 80% of the total debt due of more than INR 2,400 crore basis audit held by CAG, totalling INR 1,925 crore, within three months into the escrow accounts of the two SPVs.

A spokesperson of IL&FS said: “The Supreme Court ruling on March 26, 2021, followed by HSVP’s compliance with the order and transfer of the payable amount to the IL&FS Group entities, will go a long way in protecting the interest of stakeholders/Lenders in the Indian infrastructure sector.

“This ruling will also set a precedence for other projects wherein Infrastructure companies, including IL&FS, are seeking payment of their legitimate dues and enforceability of valid contracts and concession agreements with various State Governments.”