Delhi HC asks DMRC to deposit ₹600 cr in escrow account for DAMEPL in two days
PremiumSenior advocate Parag Tripathi, representing DMRC, initially submitted that the corporation will pay ₹600 crore in 72 hours
The Delhi High Court on Monday asked the Delhi Metro Rail Corporation (DMRC) to deposit ₹600 crore within two days in an escrow account for Delhi Airport Metro Express Private Limited (DAMEPL).
This came after the DAMEPL initiated execution proceedings against DMRC concerning an arbitral award of over ₹4,600 crore in its favour.
Senior advocate Parag Tripathi, representing DMRC, initially submitted that the corporation will pay ₹600 crore in 72 hours and urged the court to grant some time to it to approach banks for taking the loan for paying the arbitral award amount.
He said the money received by it from governmental agencies is for the completion of metro projects and the amount cannot be used by DMRC for paying the arbitral award amount.
"I have money in my account but it is earmarked for a project and it is not my money. I do not have to power to dispose of this money," Tripathi submitted on behalf of DMRC.
The court, however, asked the DMRC to deposit ₹600 crore within two days, and the counsel appearing for it agreed.
Justice Suresh Kumar Kait took on record the statement made by DMRC’s counsel and reserved the order on the execution petition.
DAMEPL was represented by senior advocate Rakesh Kumar Khanna.
In an earlier affidavit, DMRC had stated that as of 14 February, it has a total of ₹5,694.25 crore as funds which include ₹1,452.10 crore as DMRC funds and ₹2,681.29 has project funds.
The court had earlier directed DMRC to give details of its funds and balance sheet.
It had pulled up DAMEPL for holding out-of-court communications with DMRC to settle the dispute relating to the execution of the over ₹4,600 crore arbitral award passed against the PSU.
An arbitral tribunal in its May 2017 award had ruled in favour of DAMEPL, which had pulled out from running the Airport Express metro line over safety issues, and accepted its claim that the running of operations on the line was not viable due to structural defects in the viaduct through which the train would run.
The arbitral award pertained to a concession agreement between the two entities, which was signed on 25 August 2008. Under the agreement, DMRC was to carry out the civil works, excluding at the depot, and the balance, including the project system works, were to be executed by DAMEPL, a joint venture of Rinfra and a Spanish construction company -- Construcciones Y Auxiliar De Ferrocarriles -- with a shareholding of 95 and five per cent respectively.
DAMEPL had borrowed from 11 banks – Axis Bank, UCO Bank, Punjab, and Sind Bank, Andhra Bank, Central Bank of India, Dena Bank, Allahabad Bank, Canara Bank, Bank of India, IIFC UK, and Canara Bank London – to carry out operations on the line.
The Airport Express line was commissioned on 23 February 2011, after an investment of over ₹2,885 crore, funded by the DAMEPL's promoters' fund, banks, and financial institutions.
With inputs from agencies.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!