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Business News/ Companies / News/  Delhi HC to hear Reliance Infra, DMRC dispute on arbitral sum
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Delhi HC to hear Reliance Infra, DMRC dispute on arbitral sum

DMRC has submitted an affidavit to the Delhi high court claiming it had total funds of only ₹5,800.93 crore as of 17 December, lower than the entire arbitral amount award

The Supreme Court had, in an order passed last year, directed DMRC to pay DAMEPL an arbitral award of about ₹7,200 crore. HTPremium
The Supreme Court had, in an order passed last year, directed DMRC to pay DAMEPL an arbitral award of about 7,200 crore. HT

NEW DELHI : The Delhi high court will on Wednesday hear an execution petition filed by the Delhi Airport Metro Express Pvt. Ltd (DAMEPL) to direct the Delhi Metro Rail Corp. (DMRC) to pay the amount it won in an arbitration dispute.

Under a Supreme Court order last year, DMRC must pay DAMEPL, owned by Anil Ambani’s Reliance Infrastructure Ltd, an arbitral award of around 7,200 crore.

DMRC has submitted an affidavit to the Delhi high court claiming it had total funds of only 5,800.93 crore as of 17 December, lower than the entire arbitral amount award, a person aware of the matter said.

A DMRC spokesperson refused to comment on the matter saying that it was sub-judice. Reliance Infrastructure also did not comment on the matter.

DAMEPL had entered into a contract with DMRC in 2008 for running the airport metro line till 2038.

After the early termination of this contract and protracted litigation, DAMEPL won a Supreme Court case against DMRC on the issue of termination of the concession agreement last December.

In its earlier hearing on 6 December, the Delhi high court had directed DMRC to deposit 1,000 crore in an escrow account.

According to DAMEPL’s execution petition, 2,945 crore is the principal amount, while the remaining 4,305 crore is the pre-award and post-award interest.

DMRC is yet to devise a clear plan to make the payment to DAMEPL.

At the last hearing, DAMEPL counsel Rajiv Nayar informed the Delhi high court that the delay in payment of the award is putting an additional interest burden of 2 crore per day on taxpayer’s money.

Delhi Metro Rail Corporation has been utilizing the project assets constructed or installed by DAMEPL as well as the project revenues since July 2013.

swati.luthra@livemint.com

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ABOUT THE AUTHOR
Swati Luthra
Swati Luthra writes on climate change, water, environment and forest issues for Mint. A graduate in Psychology, Swati has been mapping India’s policy initiatives to help meet the pledges made at CoP-26 including achieving net-zero carbon emissions by 2070.
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Published: 22 Dec 2021, 01:58 AM IST
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