Reliance Infra’s Metro Arm Won’t Be Declared NPA As of Now: SC

The DMRC said that it was forced to operate the metro after the RInfra arm abandoned the project mid-way.

(Photo: Reuters) 

The Anil Ambani-led Reliance Infrastructure's (RInfra's) arm, Delhi Airport Metro Express Private Limited would not be declared a non-performing asset until further orders, said the Supreme Court on Monday, 22 April, as reported by The Wire.

RInfra arm has filed a plea saying that the Delhi Metro Rail Corporation (DMRC) was earning the revenue from the operations of the Airport Express and hence, they should be the ones servicing the debt of Rs 1,500 crore.

The DMRC said that it was forced to operate the metro after the RInfra arm abandoned the project mid-way.

The apex court said that it would hear the matter in July. DAMEPL had borrowed from several banks, including Axis Bank, UCO Bank, Punjab and Sindh Bank, Central Bank of India, Allahabad Bank, to operate the metro.

The Delhi High Court, in January, had put aside Rs 4,500 crore arbitration award in favour of Reliance Infra's arm.

An arbitral tribunal in 2017 had accepted the claim of DAMPEL's claim that carrying on the operations on the line was not viable because of defects in the structure.

As per the agreement, DMRC would have to pay 80% of the debt after DAMEPL's fault led to termination of contract to run the airport line.

(With inputs from The Wire)