Big Supreme Court BREATHER for Reliance Infra! Apex court upholds 2017 arbitration award – company to get Rs 5000 cr from DMRC
As per estimates, the amount due to Reliance Infra was around Rs 4,600 as on January 2019. If the interest for the remaining period up to now is calculated, the amount to be paid to Reliance Infra will be around Rs 5000 cr
A big breather has come for the Anil Ambani Group from the Supreme Court of India. This is a development around Reliance Infrastructure Limited which has got a relief from the top court. Zee Business’ Brajesh Kumar has a detailed report on the story.
Kumar said that there is a “supreme” relief from the Supreme Court for Reliance Infra. The apex court in its judgement has ruled the arbitration ward of Rs 2,800 cr in favour of the company. In its judgement today, the apex court upheld the 2017 arbitration award in favour of the Anil Ambani company.
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The arbitration was earlier challenged in the Delhi High Court. The SC has also ruled that this amount of Rs 2,800 cr will be paid back to the company with the interest accrued over a period of 8 years. This money will be given by Delhi Metro Rail Corporation Limited to Reliance Infrastructure.
As per estimates, the amount due to Reliance Infra was around Rs 4,600 as on January 2019. If the interest for the remaining period up to now is calculated, the amount to be paid to Reliance Infra will be around Rs 5000 cr, Kumar said.
The standalone debt of Reliance Infra is around Rs 3,800 cr and the money that it will be receiving against this would be around Rs 5000 cr.
On the standalone basis, if this money comes to its fold, Reliance Infra could transform into a debt free company.
The issue is related to a dispute arising out of termination of operations in 2012 by Reliance Infra. The company ended its operations on metro line connecting Delhi Airport. The company cited reasons that the structures constructed by DMRC had developed cracks and it was not possible to run metro at this route because of safety reasons.
However, DMRC had rejected the claims made by Reliance Infra. Reliance Infra had accused DMRC of not mending the faulty structures and said that it will not continue its operations.
This case later went into the arbitration. It then went before the Delhi High Court where a single-judge bench had ruled in favour of Reliance Infrastructure. It was later challenged before the double-judge bench of the high court which had ruled against the company.
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#RelianceInfrastructure को सुप्रीम कोर्ट से बड़ी राहत
दिल्ली मेट्रो रेल कॉरपोरेशन से मिल सकते हैं अटके हुए करीब ₹5000 करोड़
— Zee Business (@ZeeBusiness) September 9, 2021
Finally, it went to SC, which today ruled in favour of Reliance Infra.
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