NCLT Dismisses Insolvency Proceedings Against Mumbai Metro One

Reliance Infrastructure Breathes Easy as Court Approves Debt Settlement, Clearing Path for Maharashtra Government Stake Acquisition

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Mumbai Metro One
Mumbai Metro One

MUMBAI (Metro Rail News): The National Company Law Tribunal (NCLT) Mumbai bench has dismissed the bankruptcy petitions filed by State Bank of India (SBI) and IDBI Bank against Mumbai Metro One Pvt Ltd (MMOPL). This development was revealed in a stock exchange filing on April 15, following a conclusive one-time settlement among the lenders.

SBI and IDBI initiated the insolvency proceedings last year to recover their dues of ₹416 crore and ₹133 crore, respectively, as part of a consortium loan amounting to ₹1,711 crore for the Mumbai Metro project. The settlement ends the financial disputes clouding MMOPL, where Reliance Infrastructure holds a 74% stake and the Mumbai Metropolitan Regional Development Authority (MMRDA) holds 26%.

MMOPL operates the 11.4-kilometer Mumbai Metro One line connecting Versova, Andheri, and Ghatkopar—Mumbai’s oldest and busiest metro line with a daily ridership exceeding 450,000 commuters. The Maharashtra cabinet recently approved a plan to buy out Reliance Infrastructure’s 74% stake in MMOPL, valuing the stake at ₹4,000 crore based on a valuation by a committee led by former state chief secretary Johny Joseph.

This tribunal decision comes shortly after a Supreme Court ruling that reversed its previous order requiring Delhi Metro Rail Corporation (DMRC) to pay an ₹8,000 crore arbitration award to another Reliance Infrastructure subsidiary, Delhi Airport Metro Express Pvt Ltd (DAMEPL). The Court also mandated DAMEPL to repay any received funds, clarifying that Reliance Infrastructure incurs no liabilities from this decision.

The NCLT’s dismissal of the insolvency proceedings against MMOPL paves the way for the Maharashtra government to proceed with its acquisition of Reliance Infrastructure’s stake in the metro project. This move is expected to stabilize the operations and financial management of Mumbai’s critical metro service, ensuring continued transport connectivity for the city’s millions of commuters. The decision also signifies a step towards resolving prolonged financial disputes and strategic realignment for Reliance Infrastructure as it divests from non-core businesses.

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