DMRC to pay interest of Rs 2,800 crore plus to the Reliance Infrastructure

The Supreme Court of India supported Reliance Infrastructure’s Rs 2800 crore arbitral award claim, leading DMRC to pay damages of Rs 2800 crore plus interest to Reliance Infrastructure arm, said CNBC-tv18 reports.

On September 9, The Supreme Court of India supported Reliance Infrastructure’s Rs 2800 crore arbitral award, leading DMRC to pay damages of Rs 2800 crore plus interest to Reliance Infrastructure arm, said CNBC-tv18 reports. The total amount of damages including the interest stood at Rs 4,500 in January 2019.

An agreement between Reliance Infrastructure and DMRC for Delhi Airport Express on a Build–operate–transfer (BOT) basis obtain a case in 2008. However, the agreement was terminated by Reliance Infrastructure in 2012. Delhi Metro Rail Corporation Limited (DMRC) call on an arbitration clause looking to initiate arbitration. In 2017, DMRC was directed to pay Rs 2800 crore plus interest as Arbitral Tribunal awarded damages to the Reliance Infrastructure arm.

DMRC was directed to pay damages in 2018, by a Single Judge Bench of Delhi High Court. However, the arbitral award in 2019 was put away by the Division Bench of Delhi High Court, which gave relief to DMRC.

After that, the Reliance Infra proceed to Supreme Court to challenge the Delhi High Court decision to set aside the arbitral award. As per the report which resulted in the shares of Reliance Infra hit 5 percent upper circuit. The stock was trading at Rs 74.15, up to Rs 3.50, or 4.95 percent. It has affected an intraday rise of Rs 74.15 and an intraday low of Rs 71.30. There were pending buy orders of 938,284 shares, with no sellers available.

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