Delhi Govt Not Willing To Pay Towards Payment Of Dues To Reliance Infra: DMRC To High Court

The Delhi Metro Rail Corporation (DMRC) on Wednesday informed Delhi High Court that the Delhi Government "is not inclined" to contribute towards the payment of unpaid dues of arbitral award to Reliance Infrastructure-promoted Delhi Airport Metro Express Private Ltd (DAMEPL).

Justice Yashwant Varma took note of the affidavit filed by DMRC in which it was stated that Delhi government has informed that it is not inclined to provide Rs. 3565.64 Crores towards equity for payment of the arbitral amount with interest.

Attorney General for India R. Venkataramani on behalf of Central Government and DMRC told the court that the matter is under active consideration and deliberation of appropriate authorities and they are hopeful that the same will be resolved by January 16.

“Accepting the statement so made, let the matter be called again on January 19,” the court said.

Delhi Government in its communication to the DMRC has said that the shareholders cannot be held liable for payments arising out of disputes or contractual defaults.

DMRC has now told the court that it may raise money from Open Market or through externally aided Funds or loan from Government of India to meet this liability.

The court is dealing with a petition filed by DAMEPL seeking enforcement of the arbitration award dated May 11, 2017. In 2008, DMRC had signed a contract with DAMEPL, related to "the design, installation, commissioning, operation and maintenance of the line". 

Due to certain disputes, the matter went into arbitration in 2012 - the DMRC invoked the arbitration after DAMEPL terminated the agreement on certain grounds. The award in favour of DAMEPL was upheld by the Supreme Court.

According to DMRC, it owes Rs.7,010.08 Crore to the Reliance subsidiary as on September 06, 2022. Till now, a sum of Rs.2,599.17 Crore has been paid to DAMEPL. The DMRC had sought Rs 3500 Crore each from both Centre and Delhi government.

Case Title: Delhi Airport Metro Express Private Limited v. Delhi Metro Rail Corporation Ltd.