Delhi Metro | DMRC loses case against DAMEPL (Reliance Infra) in Delhi High Court

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Delhi Metro Airport Express Line
Delhi Metro Airport Express Line/Representational image
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New Delhi: Reliance Infrastructure owner of Delhi Airport Metro Express Private Limited (DAMEPL) won its case against the Delhi Metro Rail Corporation (DMRC) in the Delhi High Court on Tuesday.

According to DAMEPL, “The Delhi High Court has upheld the arbitration award of Rs 2,950 crore as compensation along with interest to Delhi Airport Metro Express Private Limited (DAMEPL), a subsidiary of Reliance Infrastructure Limited (RInfra), by a three-member Arbitration Tribunal. Reliance Infrastructure stands to get Rs 5,060 crore from the award, which it would entirely utilise to reduce its consolidated debt. This amount is arbitration award amount plus interest till March 31, 2018.”

Delhi High Court has directed DMRC to deposit Rs 3,502 crore in escrow account within four weeks.

“Now that the Delhi High Court has upheld the award by the arbitration tribunal, we expect the compensation to be paid expeditiously, which we shall utilise to retire the outstanding debt of RInfra and DAMEPL,” Reliance Infrastructure spokesperson said.
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“The High Court upheld the validity of the award granted by the three-member arbitration tribunal unanimously on the basis of termination provisions of the concession agreement, which DAMEPL had utilised to terminate its agreement with Delhi Metro Rail Corporation,” the statement said.

In September 2013, the three-member Arbitration Tribunal, was formed out of the DMRC-nominated panel as per the Concession Agreement. It gave its award in May 2017 after hearing the case for almost four years.

The tribunal heard the submissions made by both the parties and after detailed proceedings in 68 hearings, it had issued its final order whereby it had awarded the compensation to DAMEPL.

It is pertinent to mention here that the three-member Arbitration Tribunal had found irregularities in execution of airport line metro project.  Its operations were suspended in July 2012 after DAMEPL complained of construction defects in the rail lines built by DMRC.

Delhi Metro built the infrastructure under the supervision of present MD/DMRC, Mangu Singh then Director (Project) for Airport line and DAMEPL brought in the rolling stock and was supposed to run it for 30 years. The project was built on a shared cost of about Rs 6,000 crore.

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