Published by: Para Yadav
Last update: March 18, 2023, 10:56 AM IST
Delhi Metro Rail Corporation (Photo: IANS)
The DMRC has been instructed to transfer the entire amount due to DAMEPL plus interest into escrow upon receipt of the funds
The Delhi High Court on Friday ordered Delhi Metro Rail Corporation (DMRC) to deposit all amounts payable under an arbitration award to Reliance Infrastructure-owned Delhi Airport Metro Express Private Limited (DAMEPL) after funds were withdrawn from central and state governments received from Delhi .
A single judge of Judge Yashwant Varma directed the two governments to deal with the DMRC’s request to extend the subordinated government guarantee so that it could liquidate its liabilities under the award.
“If DMRC is granted permission, it must deposit the entire amount payable under the award, together with interest, within one month. If the Union Ministry or GNTCD denies the request, after two weeks, the Union will refund and repatriate any funds received from the DMRC after March 10, 2022,” the bank said.
Also Read: New Delhi-Varanasi Vande Bharat Express Train Runs 5 Days a Week, Check Fare
The DMRC has been instructed to transfer the entire amount due to DAMEPL plus interest into escrow upon receipt of the funds.
Judge Varma added, “If, despite the above orders, DMRC fails to settle all outstanding amounts, the Court reserves the right to issue further appropriate orders against the Union Department and GNTCD after the corporate veil has been duly lifted.”
The High Court was informed by the Center on March 2 that it cannot sanction the seizure of DMRC property for repayment of an unpaid award to DAMEPL as that would bring the City to a standstill.
It had said the imposition of sanctions would cause significant inconvenience to the public and affect law and order in the state capital.
“It is submitted that the Responding Defendant cannot grant a sanction for the attachment of the DMRC’s property as it would result in the closure of the DMRC and bring the city of Delhi to a standstill. Such a situation will cause significant inconvenience to the public and affect law and order in the city. The responding respondent as guardian of the public good cannot allow such circumstances,” the affidavit stated.
An amount of Rs 1,678.42 crore of the award has already been paid and Rs 6,330.96 crore is still to be paid by DMRC.
Attorney General R. Venkataramani told the Supreme Court on January 31 that if the center agrees to pay Reliance Infra an interest-free subordinated debt on behalf of the DMRC, the Delhi government will follow suit.
Earlier this year, DMRC had informed the court that it had asked the Delhi center and government for Rs 3,565.64 crore each in interest-free subordinated debt to repay the DAMEPL.
Each of the Central and Delhi governments owns a 50 percent stake in DMRC, but none of them accepted the payment.
The award under consideration resulted from a contract signed by DMRC and DAMEPL in 2008 for the construction and operation of the Delhi Metro Orange Line, which runs from New Delhi Railway Station to Terminal 3 of Indira Gandhi International Airport at Dwarka Sector-21.
Read all the latest car news here
(This article was not edited by News18 staff and is published by a syndicated news outlet feed.)
You Can Find related services like Used Auto Parts Store, Automation Company, Auto Repair Shop, Auto Radiator Repair Service, Auto Parts Store, Auto Parts Manufacturer, Auto Body Shop, Auto Air Conditioning Service, Auto Electrical Service at Namelocals.