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Delhi HC to Hear Reliance Infra and DMRC Arbitration Dispute

NEW DELHI : Delhi High Court will hear an enforcement motion filed by Delhi Airport Metro Express Pvt on Wednesday. Ltd (DAMEPL) to order the Delhi Metro Rail Corp. (DMRC) to pay the amount it won in an arbitral dispute.

Under a Supreme Court order last year, DMRC must pay DAMEPL, owned by Anil Ambani’s Reliance Infrastructure Ltd, an arbitration award of approximately ??7,200 crores.

DMRC submitted an affidavit to the Delhi High Court claiming it had total funds of only ??5,800.93 crore as of Dec. 17, lower than the total arbitration amount, said a person familiar with the case.

A spokesperson for the DMRC declined to comment on the case, saying it was pending. Reliance Infrastructure has also not commented on the matter.

DAMEPL had entered into a contract with DMRC in 2008 for the operation of the metro line from the airport until 2038.

After the early termination of this contract and a protracted litigation, DAMEPL won a Supreme Court case against DMRC on the issue of the termination of the concession contract last December.

At its previous hearing on December 6, the Delhi High Court ordered DMRC to file ??1,000 crore in an escrow account.

According to the execution request of DAMEPL, ??2 945 crore is the principal amount, while the remainder ??4,305 crore is the interest before and after the award.

DMRC has not yet developed a clear plan for making payment to DAMEPL.

At the last hearing, DAMEPL’s attorney, Rajiv Nayar, informed the Delhi High Court that the late payment of the compensation was causing an additional interest charge of ??2 crore per day on taxpayer money.

Delhi Metro Rail Corporation has been using project assets constructed or installed by DAMEPL as well as project revenues since July 2013.

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