Delhi Metro’s Plea For Refund Of Rs 678 Crore Paid To Reliance Infra Lenders Rejected


DMRC had filed a restitution request in February 2019 in Delhi HC.

The Delhi High Court on Friday dismissed the Delhi Metro Rail Corporation’s (DMRC) restitution claim seeking repayment of Rs. 678 crore paid by the company to lenders at Delhi Airport Metro Express Pvt. Ltd, (DAMEPL), a subsidiary of Reliance Infrastructure Limited, in 2018. A division bench of Judges Vipin Sanghi and Jasmeet Singh rejected the DMRC’s plea.

“Counsel for the appellant states that the Supreme Court rejected the request for review presented in the civil appeal No. 5627/2021 read with the civil appeal No. 5628/2021 regarding the order of 09.09 .2021. Therefore, this request does not survive.. The same is, accordingly, rejected, “said the court.

This money was paid by the DMRC to the lenders of Delhi Airport Metro Express Pvt Ltd (DAMEPL) in accordance with the order of the Single Court of Delhi High Court which upheld the Rs. 47.00 crore arbitration award in favor of DAMEPL .

In January 2019, the Bench Division of the Delhi High Court, while setting aside the arbitration award, allowed DMRC to appeal against the Single Judge Bench order of May 2018 and also allowed DMRC to seek reimbursement of Rs. 678.42 crore paid by the company to DAMEPL’s lenders from time to time,

To request the refund, DMRC had filed a refund request in February 2019 at Delhi HC. The Supreme Court recently upheld a 2017 arbitration award that required the Delhi Metro Rail Corporation (DMRC) to pay damages of around Rs 2,800 crore with interest to Reliance Infrastructure Ltd.

The Reliance Infrastructure unit had entered into a mutual contract in 2008 with the Delhi Metro to manage the country’s first private rail project until 2038. As disputes arose over fees and operations in 2012, the company d’Ambani ceased to operate the capital airport metro project and initiated arbitration proceedings. against Delhi Metro alleging breach of contract and requested termination fees.

The arbitration had already been challenged in the Delhi High Court. Reliance Infra then challenged this decision of the formation of two judges of the High Court of Delhi before the Supreme Court. The highest court has now set aside the order of the Delhi High Court and asked the DMRC to honor the arbitral award.

The Supreme Court also ruled that this amount of Rs 2,800 crore would be refunded to the company with interest accrued over an eight-year period. This money will be donated by Delhi Metro Rail Corporation Limited to Reliance Infrastructure.


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