High Court upholds Rs 5,000 cr compensation to Reliance Infra from DMRCL

The Delhi High Court has upheld the award of a Rs 5,060 cr compensation by the Delhi Metro Rail Corporation for circumstances leading to cancellation of Reliance Infra’s airport metro service.

The compensation was originally awarded by an arbitration panel last year.

Along with interest, said the Anil Ambani company, the total amount will coem to about Rs 5,060 cr.

“This amount is arbitration award amount plus interest till March 31, 2018,” it said, adding that it shall use the amount entirely to retire debt of Reliance Infra and the airport line subsidiary.

Reliance pulled out of the project in 2013 after the airport express line — which connects Delhi with the Indira Gandhi airport — was closed due to cracks in the civil structure.

The line remained closed for six months, which the Anil Ambani Group company said caused it a lot of hardships. The company withdrew from running the line and filed for damages running into hundreds of crores of rupees.

The High Court upheld the validity of the award on the basis of termination provisions of the Concession Agreement, the company said.

It remains to be seen, however, if the DMRCL will approach the Supreme Court.

“Now that the Hon’ble Delhi High Court has upheld the award by the arbitration tribunal, we expect the compensation to be paid expeditiously,” the company said. The three-member arbitration tribunal was formed in September 2013. It gave its award in May 2017 after hearing the case for almost four years.