BUSINESS
Justice Vibhu Bakhru issued the interim order "in view of the financial conditions and interest burden being borne" by the concessionaire Delhi Airport Metro Express Private Limited (DAMEPL).
The Delhi Metro was today asked by the Delhi High Court to pay Rs 60 crore to a lender of its former concessionaire for the airport express line towards interest for the next three months on loans taken to build the line.
Justice Vibhu Bakhru issued the interim order "in view of the financial conditions and interest burden being borne" by the concessionaire Delhi Airport Metro Express Private Limited (DAMEPL).
It directed the Delhi Metro Rail Corporation (DMRC) to deposit the amount, within 10 days, directly into DAMEPL's loan account with Axis Bank - the main lender.
The payment would be made on DAMEPL furnishing a bank guarantee of Rs 65 crore to secure the interests of DMRC if it succeeds in the litigation.
The interim order came on a plea by DAMEPL seeking early payment of Rs 3,502 crore, which is 75 per cent of the arbitral award of Rs 4,670 crore granted in its favour on May 11.
DAMEPL, a subsidiary of the Reliance Infrastructure (Rinfra), has claimed that under the guidelines issued by Niti Aayog on September 5, 2016, public sector undertakings (PSUs) are to pay 75 per cent of the award amount even if they propose to challenge the arbitral award.
The court said it will look into the applicability of the Niti Aayog memorandum on the next date of hearing on July 19.
DMRC had yesterday told the court that the Niti Aayog guidelines would not apply in the matter as the award was of May 11 and it had 90 days to challenge the arbitral tribunal's decision.
It had said the guidelines would apply only after the PSU challenges the award.
DMRC had said the Niti Aayog memorandum was only a measure of protection, when enforcement of an award remains pending for long periods, and not a relief.
The concessionaire had earlier told the court that it has been paying Rs 18-20 crore a month since July 2013 for servicing the debt and has already shelled out over Rs 1070 crore towards payment of interest with the initial capital still remaining as outstanding.
According to DAMEPL's plea, the concession agreement was entered into between the two on August 25, 2008. Under the agreement the DMRC was to carry out the civil works, excluding at the depot, and the balance, including the project system works, were to be executed by DAMEPL, the plea has said.
The Airport Express line was commissioned on February 23, 2011 after an investment of Rs 2,885 crore funded by DAMEPL's promoters' fund, banks and financial institutions.
DAMEPL has said it had terminated the concession agreement as the DMRC had not cured some defects in the line within 90 days of the notice issued by it.
According to its plea, the agreement was terminated with effect from January 1, 2013 and the project was handed over to the DMRC on June 30, 2013. Till handing over of the project, the DAMEPL had operated the line as a deemed agent of DMRC.
Arbitration was entered into in August 2013 after efforts to amicably resolve the issues did not yield results.
DAMEPL is a joint venture of Rinfra and a Spanish construction company -- Construcciones Y Auxiliar De Ferrocarriles, with a shareholding of 95 and five per cent respectively.
The concessionaire, in its plea, has claimed that "the payment of the interest to the lenders by it over the last four years in addition to the capital invested has enormously benefited DMRC and caused a financial crunch to DAMEPL".
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
DNA TV Show: Conflicting data on Delhi station stampede reveals communication gap
WATCH: Baba Ramdev at 59 takes part in race with horse, netizens say 'Olympics me chalo'
Delhi woman turns auto driver to support daughter, her story goes viral
Viral video declares Rajat Patidar ‘Captain of Captains’ after RCB names him Skipper, here's why
Indian Army havildar loses teen son, saves others’ lives by...
WPL 2025: Smriti Mandhana creates history during RCB vs DC match, becomes first player to cross...
Ronit Roy says he was the first choice for Pardes but he was replaced by...because...
‘Papa killed mummy': 4-year-old's drawing creates suspicion over woman’s alleged suicide
Sunil Mittal gets Rs 8486 crore after selling....; still seeks funds for newer...
How a low cost floor cleaning robot revolutinising home automation – Check details
Harvard Alum Aayush Puri: Move back to India, the future is here
Vicky Kaushal reveals how his fight scene with lion in Chhaava was shot: 'We were all so...'
Shabana Azmi holds her ears, issues public apology to Dabba Cartel co-star Jyotika; here's why
Meet Arvind Kejriwal’s daughter, who cracked IIT-JEE Advanced, went to IIT Delhi, now working as...
'Kohli never said a word': Pakistan's Haris Rauf on Virat Kohli hitting sixes against him in...
Bengaluru to witness hottest summer says IMD, recorded season’s highest temperature at...
Ranveer Singh to venture in production amid box office slump? Here's the truth
Where to Buy Testosterone in the USA? Top 3 Best Brands of Testosterone Cypionate in 2025
Pregnant woman employee gets Rs 1 crore compensation after being fired through...
ELECRAMA 2025: Powering the Future of Energy
Steroids for Sale in the USA: Buy Steroids Online in 2025
How to Choose Trenbolone for Sale Online? Review of Popular Trenbolone Manufacturers
After disrupting Indian market, Mukesh Ambani takes THIS popular brand to...
Remedium Lifecare Lands Rs 182 Crore Multi-Year Contract: Stock Set for Major Upturn
Former ISRO chief AS Kiran Kumar visits Goenka Temple, expresses hope for successful Mars mission
Anil Ambani's Rs 9831 crore company set to enter NEW space, makes key...
Vladimir Putin's BIG warning to Ukraine, will negotiate only if...
347 rooms, Rs 22400 crore worth: India's most expensive wedding venue is located in...
Woman constable carries baby on duty, RPSF says, 'she serves, she...', video goes viral
'Caught Red-Handed': Cognizant accuses Narayana Murthy's Infosys of stealing THIS secret in...
'Bharat Jodo Vivah': Wedding invite of Jammu's daughter, Kerala's son wows internet
Pavitra Rishta fame Usha Nadkarni cries inconsolably as she remembers her brother's death, watch
MASSIVE discount on Apple iPhone 16, iPhone 15, check here how to grab this deal
Juhi Chawla takes holy dip at Mahakumbh 2025, calls it 'most beautiful morning in her life'
Deepinder Goyal's Zomato launches first AI product ‘Nugget,’ says will give it for free to…
Champions Trophy 2025: 5 major records that Virat Kohli can break in this tournament
Shweta Basu Prasad says she was bullied on Telugu film set: 'I was called...'
Gujarat: Lion brings traffic to a halt at Bhavnagar-Somnath highway, watch viral video
India's Got Latent row: SC grants interim relief from arrest to Ranveer Allahbadia
Tesla begins hiring in India after PM Modi-Musk meet, announces multiple job roles in...
Gurugram woman shares interview experience at Zomato, CEO Deepinder Goyal reacts, says...
'Sir ek kiss ho jaye': Paps unleash a horror welcome on Udit Narayan
Salman Khan, Sanjay Dutt REUNITE for Hollywood thriller, filming begins in Saudi Arabia: Report
Gujarat: Videos of women patients leaked on Telegram, YouTube, probe ordered
South Korean actress Kim Sae-ron found dead at home, cause of death revealed
Canada: Delta Airlines plane crashes at Toronto Pearson airport, flips upside down, several injured
Meet Gyanesh Kumar, IIT graduate, who becomes new Chief Election Commissioner
DNA TV Show: RSS' Bihar model ahead of Assembly elections in state
WPL 2025: Renuka, Wareham spark collapse as RCB bowl out Delhi Capitals for 141