High Court directs Delhi Metro to take over debts of Reliance Infrastructure’s DAMEPL
The Delhi High Court has directed the Delhi Metro Rail Corporation (DMRC) to take over the servicing of all debt liabilities of Reliance Infrastructure (RInfra) subsidiary Delhi Airport Metro Express Pvt Ltd (DAMEPL) amounting to Rs 1,618 crore, RInfra said on Tuesday. The company said 11 banks, who had lent to DAMEPL to run the Delhi Airport Metro Express line, will benefit from the latest High Court order.
“The division bench of Justices Sanjiv Khanna and Chander Shekhar passed the interim order on the Section 37 application filed by DMRC,” the Mumbai-headquartered RInfra said in a statement. “As per the order, DMRC will have to start servicing the DAMEPL debt to 11 banks who had lent to the infrastructure major’s subsidiary to run the Delhi Airport Metro Express line.
“The DMRC had challenged a March 6, 2018 Delhi High Court single judge order upholding the Rs 5,300 crore arbitral award, including interest, in favour of DAMEPL,” it added. Late last month, RInfra said the Delhi High Court had directed the DMRC to pay Rs 306 crore as immediate interim relief to the company.
RInfra said that DMRC had been directed to pay this amount to a consortium of banks, by March 31, to ensure that no account of DAMEPL turns a non-performing asset (NPA), or bad loan.