Delhi Metro Case: DMRC Sends Final Notice To Reliance Infra Arm, Seeks Rs 2,600-Crore Refund
As per its notice, DMRC will be forced to file a contempt of court case against Delhi Airport Metro Express Pvt. Ltd. if the latter fails to deposit the amount within 15 days.
Delhi Metro Rail Corporation has sent a final notice to Reliance Infra-led Delhi Airport Metro Express Pvt., or DAMEPAL, to refund Rs 2,599 crore within 15 days, failing which the public sector undertaking will be forced to file a contempt of court case against DAMEPAL.
As per an exchange filing, DMRC has asked DAMEPAL to deposit Rs 2,599 crore along with interest at the rate of SBI’s Prime Lending Rate +2% within the above-mentioned timeline.
The notice has been sent pursuant to a top court verdict that overturned an arbitral award that was originally awarded in favour of DAMEPAL.
The arbitral award to Delhi Airport Metro Express was in regard to a dispute over an agreement between the two to construct, operate and maintain the Delhi Airport Metro Express line.
DAMEPL had in 2012 terminated the agreement in 2012 after claiming that DMRC had not fixed some structural defects it had identified.
In 2017, an arbitral tribunal held that the company’s decision to terminate its concession agreement for the Delhi Airport Metro Express Line project four years ago was valid, and it won an arbitral award to the tune of Rs 2,950 crore with interest.
As per the notice, DMRC has stated that when the award was originally awarded against it, it had deposited the Rs 2,599 crore in an escrow account maintained by Axis Bank Ltd.
DMRC further states that the bank holding the deposit made by DMRC must return the deposits as it is bound to follow the direction of the apex court. “Banks do not need any permission, leave or authorization from any person for handing over the deposits back to DMRC," the notice states.
