Reliance Infra wins arbitral award in Supreme Court against Delhi Metro Rail
Reliance Infrastructure Limited (Reliance Infra) said that the Supreme Court of India has upheld the arbitral award in favor of its subsidiary — Delhi Airport Metro Express Private Ltd (DAMEPL) against the Delhi Metro Rail Corporation.
As per the court judgment, the Delhi Metro Rail Corporation has to pay INR 2,950 crores in damages plus interest up to the date of payment to DAMEPL.
The dispute between the parties is regarding the scrapping of a contract to operate the 22.7km long Airport Express Line.
Reliance Infrastructure subsidiary — DAMEPL wins arbitral award in Supreme Court against Delhi Metro Rail. Photo courtesy of Shashankduhan/Wikipedia.org.
As per an agreement signed with the Delhi Metro Rail Corporation, the Reliance Infrastructure subsidiary was to run the Airport Express Line for 30 years. In late 2012, DAMEPL issued a termination notice to Delhi Metro Rail Corporation, citing issues regarding financial viability and the alleged failure on the latter’s part in fixing the defects in the construction.
Reliance Infrastructure, which is an Anil Ambani-owned infrastructure company, said that the proceeds from the arbitral award will be used for reducing the company’s debt.
Recently, the company had raised INR 550.56 crore by issuing securities on a preferential basis.