Delhi HC orders DMRC to pay Rs 6,330 crore to Reliance Infra’s segment

In accordance with a 2017 arbitration ruling, DMRC is obligated to pay Rs 6,330 crore to Reliance Infra’s subsidiary. According to the court, the payment must be made by May 31.

On March 10, the Delhi High Court ordered the Delhi Metro Rail Corporation Ltd (DMRC) to pay Rs 6,330 crore to a Reliance Infrastructure Ltd subsidiary in accordance with an arbitration judgment issued in 2017.

The Reliance Infrastructure-backed Delhi Airport Metro Express Pvt Ltd (DAMEPL) has petitioned the Delhi High Court to have an arbitration judgment pertaining to the Delhi Airport Metro Express Line issued in its favour enforced.


In its March 10 decision, the Supreme Court stated that the arbitration verdict “cannot be allowed to remain as a paper award,” The court ordered DMRC to redirect cash from different sources and accounts to the implementation of the arbitration judgment. According to the high court, DMRC might obtain authorization from the national government or collect funds to meet this responsibility.

After deducting the Rs 1,678 crore previously paid by DMRC, the total sum owed by Reliance Infra, including interest, was Rs 6,330 crore, according to the arbitration ruling.

DMRC has been given two weeks by the high court to pay Rs 824.10 to Reliance Infra’s DAMEPL. DMRC is obligated to pay the balance of the sum owing towards the determined amount in two equal payments on or before April 30 and May 31, respectively.

In its petition to the high court, Reliance Infra’s arm requested that DMRC deposit more than Rs 6,330 crore in an escrow account in accordance with the arbitral ruling. DMRC, on the other hand, has opposed Reliance Infra’s claim, claiming that after payments, it owed Reliance Infra around Rs 3,500 crore.

When the high court ended hearings in the matter and reserved its verdict in February of this year, DMRC agreed to deposit Rs 600 crore in the escrow account immediately in order to pay the determined amount. The high court recorded this undertaking.

The public sector undertaking had requested an extension in time for repayment for the balance of the money that DMRC believes it owes.

The Delhi Airport Metro Express Line was awarded a contract in 2008 by DMRC and Reliance Infra’s DAMEPL. DAMEPL cancelled its concession agreement with DMRC in 2012, citing the DMRC’s failure to meet certain standards for repairing building flaws within the time frame specified.

Following that, DMRC requested arbitration, which was granted to DAMEPL. The Supreme Court affirmed this award. Following that, an application was filed with the Delhi High Court to have the arbitral award enforced.