Reliance Infrastructure Files Contempt Petition Against Delhi Metro
The petition has been prompted by non-payment of the arbitral award amount by DMRC to the Anil Ambani-led company.
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Reliance Infrastructure's Delhi Airport Metro Express Pvt. has approached the Delhi High Court with a contempt petition against Delhi Metro Rail Corporation, the centre, and the state government, lawyers involved in the matter told BQ Prime on the condition of anonymity.
The petition before the Delhi High Court has been prompted by the non-payment of the arbitral award amount by DMRC to the Anil Ambani-led company. In 2017, the high court directed DMRC to pay Rs 2,950 crore after DAMEPL won in the arbitration proceedings. The dispute arose after DMRC terminated the Concessionaire Agreement with DAMEPL.
The arbitral amount, along with interest, had swelled to around Rs 8,000 crore last year. So far, DMRC has paid Rs 2,599 crore, pursuant to the high court's orders from time to time. As of April 30, the net amount recoverable from DMRC stood at Rs 4,715 crore.
Since the amount remains unpaid, DAMEPL has approached the high court seeking relief. It has filed a contempt petition against DMRC, the central government, and the Delhi government for non-compliance with the high court's March 2023 order.
In March, the high court had directed the central and Delhi governments to attend to the requests of the DMRC for extensions of sovereign guarantees or subordinate debt, enabling it to liquidate its liabilities under the award. Failing which, both were directed to repatriate all money received by them from DMRC since March 10, 2022. From the repatriated amount, DMRC was directed to transfer the amount due under the award to an escrow account.
If these directions, the high court said, are not complied with, DMRC's credit balance will be attached.
Even as DAMEPL strives to execute a six-year-old arbitral award, the Ministry of Housing and Urban Affairs has proposed to amend a section of the Metro Railways (Operation & Maintenance) Act 2002 to ensure that no attachment of properties, bank accounts, or any asset of any metro rail can ever be carried out, PTI has reported.
