PremiumMUMBAI : The Delhi government through its letter written to the Delhi Metro Rail Corporation (DMRC) said that it was not inclined to provide ₹3,565.64 crore towards equity, which was required as a part of payment to Reliance Infrastructure entity Delhi Airport Metro Express Ltd’s (DAMEPL) arbitral award, the company informed the Delhi High court on Wednesday.
A copy of the letter and the affidavit was seen by Mint.
The Delhi government in its letter clarified that “shareholders of DMRC cannot be held liable for payments arising out of disputes or contractual defaults". Adding that the company can raise money from the open market or through externally aided funds or seek loan from Government of India to meet its liabilities.
The Delhi government's stance comes as part of the high court hearing in a matter pertaining to the enforcement of an arbitration award of ₹7,200 crore in favour of the DAMEPL. Out of these 7,200 crore dues worth ₹2,600 crore have been paid by DMRC. It now owes an outstanding amount of ₹4,500 crore to DAMEPL.
This came after the top court asked the high court to expeditiously hear the matter in three months.
Delhi Airport Metro Express is owned by Reliance Infrastructure, while Delhi Metro is a government-owned company. The Government of National Capital Territory and Union Ministry of Housing and Urban Affairs (MoHUA) are the key shareholders in DMRC.
In DMRC’s board meeting that was held on 13 December, the board of directors were to consider seeking approval of the board in requesting Delhi government and MoHUA, both being the key stakeholders, to meet the liability arising out of the arbitral award in favour of the DAMEPL.
DMRC opened its rights issue to raise funds, from 15 December and will close the issue on 11 January. However, the letter from the government is now likely to delay the process.
“We are not receiving any assurance from the Centre in terms of the payment and its schedule, even now the Attorney General is not giving any assurance despite an order from the Supreme Court", senior counsel Jaideep Gupta of DAMEPL informed the high court.
To which, R Venkataramani, Attorney general representing the DMRC said that the company is hopeful that the matter will come to some direction by 16 January.
The court will now take up the matter on 19 January, as agreed by both the parties.
The Supreme Court earlier asked the Centre to provide a clarity on the timeline for settling the dues payable to Delhi Airport Metro by Delhi Metro Rail Corporation (DMRC). It also directed the high court to bring the case to its logical conclusion at the earliest.
DMRC will now place the letter received from the government before its board of directors’ meeting that is to be held on 16 January, it said.