The Reliance Infrastructure subsidiary, Delhi Airport Metro Express Pvt. Ltd. (DAMEPL) has filed an application in the Delhi High Court on January 7 stating that the Delhi Metro Rail Corporation (DMRC) in contempt, has failed to comply with the last order of the court passed on December 22 that had directed DMRC to make full disclosure of their all bank accounts and the funds lying in those accounts within one week.
The application by DAMEPL is in response to DMRC's affidavit filed on January 5 in which it has made a partial/ limited disclosure of its bank accounts only with respect to Rs. 1642.69 crores out of the total funds of Rs. 5800.93 crores that it had disclosed in the court through its last affidavit filed on December 21, 2021.
DAMEPL in its application states that DMRC has intentionally not provided details of its remaining funds and bank accounts, which is clearly disregard and contempt of the Delhi HC order.
DAMEPL says the conduct of DMRC clearly exhibits that it is deliberately trying to defeat and delay the execution process of the Arbitral Award, and also ensure that the next hearing scheduled on January 11 becomes ineffective.
The delay in the payment of the Arbitral Award by DMRC is costing the taxpayer an additional interest burden of almost Rs.1.75 crores per day.
According to the DAMEPL, DMRC in its last affidavit filed on December 21 in the Delhi High Court, had informed that it had total funds worth Rs 5800.93 crores, as of December 17, 2021. Out of this, Rs. 1642.69 crores were classified as DMRC funds, Rs. 2412.12 crores as Project funds, and balance Rs. 1746.12 crores as other than DMRC funds.
DAMEPL, in its application, has requested Delhi HC to direct DMRC to comply with the Court's previous order in letter and spirit and furnish complete details of all its bank accounts and the funds lying in those accounts along with the respective bank statements, on or before the next date of hearing i.e. January 11.
The Supreme Court (SC), on 7 September 2021, had upheld the arbitration award of Rs. 7200 crores in favor of DAMEPL.
DAMEPL then filed an execution petition in the Delhi HC on September 12, 2021, seeking the court's directions to DMRC for honoring the SC order and paying Rs. 7200 crores to the company. DMRC, out of Rs 7200 crores, has so far paid Rs 1,000 crores.
The bench of Justice Suresh Kumar Kait on the last date of hearing had noted the submission of DMRC informing the court that it has 1642 cr. in their bank account. After taking note, the bench directed DMRC to file an affidavit having details of its bank accounts along with the balance amount.
Earlier, DMRC had informed the Delhi High Court that it is agrees to deposit Rs 1000 crore in an escrow account and sought more time to compute the payable amount in the arbitral dispute with Reliance Infrastructure's Delhi Airport Metro Express Pvt Ltd (DAMEPL).
In 2008, DAMEPL had entered into a contract with DMRC for running the airport metro line till 2038.
As disputes arose between the parties, DAMEPL stopped operating the metro on the airport line and invoked the arbitration clause against DMRC alleging violation of contract, and sought a termination fee.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU