March 11, 2022
2 mins read

Major setback to DMRC

The DMRC said it had paid an amount of Rs 678.42 crore to the DAMPEL on different dates…reports Asian Lite News

Delhi High Court on Thursday asked it to pay the entire arbitral amount to the Delhi Airport Metro Express Pvt Ltd (DAMEPL) on an execution petition seeking enforcement of the arbitration award in favour of the Reliance Infrastructure’s subsidiary.

As per the DAMPEL, the decreetal sum along with interest up to January 14, 2022 computed in accordance with the arbitral award is Rs 8,009.38 crore. Out of it, only a sum of Rs 1,678.42 crore has been paid so far by the DMRC.

In the order pronounced by Justice Suresh Kumar Kait, out of Rs 1,452.10 crore, judgment debtor DMRC is directed to keep aside amount of Rs 628 crore (Rs 514 crore plus Rs 114 crore) towards statutory expenses as mentioned hereinabove and from the remaining amount, part payment of decretal amount be made within two weeks.

The remaining decretal amount payable with interest is Rs 6,330.96 crore – Rs 8,009.38 crore minus the Rs 1,678.42 crore paid.

The DMRC said it had paid amount of Rs 678.42 crore to the DAMPEL on different dates.

According to the DMRC statement, a total of Rs 5,694.25 crore is available with it as of January 14, 2022, which includes DMRC funds of Rs 1,452.10 crore, project funds of Rs 2,681.29 crore and funds of Rs 1,560.86 crore under the head of other than DMRC funds.

As per the DAMEPL’s plea, it has stated that the non-payment of termination fee since 2013 by the DMRC has caused immense damage to it and its promoter company, Reliance Infrastructure Ltd.

Reliance Infrastructure had infused Rs 2,513 crore to the DAMEPL by taking loans from public sector banks, and the banks have initiated proceedings for liquidation against the company. Any further delay in satisfying the arbitral award will result in irreversible consequences for the DAMEPL and Reliance Infrastructure Ltd, it had argued.

The delay in satisfying the arbitral award is adding an incremental daily interest of Rs 1.76 crore per day on the DMRC and this amount cumulatively comes to Rs 260 crore, for the period from September 10, 2021, to January 31, 2021.

The DAMEPL had filed an execution petition in the Delhi HC on September 12, 2021, seeking direction to DMRC for honouring the SC order and paying the dues.

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