A two-judge panel of the Supreme Court on Thursday upheld the 2017 arbitration award in favor of the Anil Ambani’s unit. The arbitration tribunal award is worth over 46.6 billion rupees ($632 million) including interest, according to Reliance Infrastructure’s annual report.
Reliance Infrastructure Limited will receive a sum of Rs 7100 cr from the Delhi Metro Rail Corporation Limited (DMRC) which will be utilised to repay the debt of Reliance Infrastructure and to make the company debt-free, Chairman Anil Ambani said on Tuesday during an Annual General Meeting (AGM) of the company.
The decision in further interest favouring Anil Ambani’s Reliance Infrastructure-promoted Delhi Airport Metro Express Pvt Ltd (DAMEPL) in connection with the construction of the 22.7-km Airport Metro Express Line project.
DMRC had invoked arbitration after DAMEPL terminated the concession agreement on the ground that defects pointed out in construction were not cured by DMRC within the stipulated 90 days.
Delhi Airport Metro Express Private Limited (DAMEPL) which operated Delhi Airport Metro Line Reliance Infrastructure is an arm of Reliance Infrastructure.
There are regulatory assets worth Rs 50,000 cr under approval/dispute before various forums for power distribution business – BSES Delhi and erstwhile GTD in Mumbai, he said adding that further arbitration claims pending before various forums amount to Rs 15,000 cr.
During the last AGM of RInfra, Anil Ambani had announced that the promoters would increase their shareholding in the company. The preferential issue of over Rs 550 cr comprising of 8.88 cr warrants of Rs 62 each, convertible into equity to increase the promoter holding to 22.06%.
As per the concession agreement, all civil works, as well as appointment of consultants, land acquisition, and other clearances from the government and other authorities, were to be obtained by DMRC while the design, supply, installation, testing and commissioning of various systems like rolling stock, power supply, overhead equipment, signalling, track system, platform, screen doors, ventilation, architectural finishing etc. were to be provided by DAMEPL.
This verdict is a crucial victory for Ambani as his telecom firms are in bankruptcy and he is contesting a personal insolvency case lodged by the country’s largest lender. Reliance Infra shares jumped by the daily limit of 5% after the court order.