Anil Ambani’s firm has received a notice from DMRC demanding a refund of Rs 2,599 crore along with interest at the rate of SBI’s Prime Lending Rate +2% within the next 15 days.
Anil Ambani led firm is currently in turbulent waters as it has received final notice to refund a massive amount of Rs 2599 crore. As per a report by NDTV profit, Reliance Infra’s Delhi Airport Metro Express Private Limited (DAMEPL) as been issued a notice by DMRC demanding a refund of Rs 2,599 crore along with interest at the rate of SBI’s Prime Lending Rate +2% within the next 15 days. Failing to pay will force DMRC to file a contempt of court case against Anil Ambani’s DAMEPAL. To recall, the Supreme Court asked to set aside the arbitral award in favour of Reliance Infrastructure’s metro arm. The top court upheld the decision of the High Court’s division bench citing patent illegality. “The amounts deposited by DMRC shall be refunded. Any amount paid by the petitioner as part of coercive action has to be refunded,” a bench led by Chief Justice of India (CJI) DY Chandrachud said.
For those who are unaware, DMRC and DAMEPL signed an agreement to design, install, commission, operate, and maintain the Airport Metro Express Line that runs from New Delhi Railway Station to Sector 21 Dwarka. The agreement was signed for a 30-year term.
While Anil Ambani’s DAMEPL was responsible for all system works, DMRC was taking care of construction of all civil structures. In 2012, DAMEPL decided to suspend operations citing issues found in the viaduct and issued a notice to DMRC which was responsible for this aspect. Later that year, DAMEPL served a termination notice, leading to authorities conducting inspections in November 2012.
Although DAMEPL restarted the line in January 2013, the company withdrew from the project within five months which pushed DMRC to invoke the arbitration clause in the contract. The arbitral tribunal later ruled in favour of DAMEPL, instructing DMRC to pay Rs 2782.33 crore in 2017.
According to the notice, DMRC deposited the Rs 2,599 crore in an escrow account maintained by Axis Bank Ltd when the award was originally awarded against it. Now, it has given a 15 day time to Anil Ambani’s firm to refund that amount.
