Anil Ambani's Reliance Infra Wins Big, SC Upholds Rs 4,600 Crore Arbitral Award Against Delhi Metro

The award, according to latest annual report of Reliance Infrastructure, is worth around 632 million USD, including the interest.

Reliance Infrastructure chairman Anil Ambani (File Pic)

New Delhi: Dismissing a plea by the Delhi Metro Rail Corporation (DMRC), the Supreme Court on Thursday upheld the 2017 arbitration award worth over Rs 4,600 crore in favour of Reliance Infrastructure (RInfra) chairman Anil Ambani’s group firm Delhi Airport Metro Express Pvt Ltd (DAMEPL).

An apex court bench headed by Justice L. Nageswara Rao quashed the Delhi High Court order that had set aside the arbitration award in favour of DAMEPL, which had pulled out from running the Airport Express metro line over safety issues, PTI reported.

READ: EC Announces By-Elections To Six Rajya Sabha Seats, Voting To Be Held On October 4

The award, according to latest annual report of Reliance Infrastructure, is worth around 632 million USD, including the interest.

The arbitral tribunal had in its May 2017 award accepted the airport metro operator’s claim that running of operations on the line was not viable due to structural defects.

DAMEPL will use the money to pay lenders, according to its lawyers’ submissions during the hearings in the case.

Earlier in 2008, DAMEPL entered into a contract with the DMRC for running the airport metro line till 2038.

DAMEPL stopped operating the metro on the airport line after disputes arose between the two parties.

Alleging violation of contract, Anil Ambani’s group firm invoked arbitration clause against the DMRC and sought a termination fee.