Bombay High Court quashes Reliance Infra proposal to hike Mumbai Metro fares
ET Bureau|
Updated: Dec 04, 2017, 11.51 PM IST
MUMBAI: The Bombay High Court on Monday quashed a proposal to increase fares of Mumbai Metro run by Reliance Infrastructure’s arm Mumbai Metro One Private Limited (MMOPL). “We are studying the detailed order and based on same, we shall take appropriate legal recourse,” a MMOPL spokesperson said.
MMOPL had said in its plea that the increase in fare was necessary to absorb the escalation of project costs. The company said it is “bleeding financially” and was suffering a loss of Rs 90 lakh every day of its operations.
A division bench comprising Chief Justice Manjula Chellur and Justice Mahesh Sonak dismissed a report of Fare Fixation Committee as well as the proposal by MMOPL to increase rates, citing it as “defective”, a PTI report said. The FFC had allowed a price band of Rs 10 to Rs 110 for the Mumbai Metro in July 2015.
The bench was hearing petitions against the increase by the Mumbai Metropolitan Region Development Authority and Congress leader Sanjay Nirupam. A company source said the project had in the last three years suffered a loss of Rs 1,000 crore.
MMOPL had said in its plea that the increase in fare was necessary to absorb the escalation of project costs. The company said it is “bleeding financially” and was suffering a loss of Rs 90 lakh every day of its operations.
A division bench comprising Chief Justice Manjula Chellur and Justice Mahesh Sonak dismissed a report of Fare Fixation Committee as well as the proposal by MMOPL to increase rates, citing it as “defective”, a PTI report said. The FFC had allowed a price band of Rs 10 to Rs 110 for the Mumbai Metro in July 2015.
The bench was hearing petitions against the increase by the Mumbai Metropolitan Region Development Authority and Congress leader Sanjay Nirupam. A company source said the project had in the last three years suffered a loss of Rs 1,000 crore.
