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The Delhi Metro Rail Corporation (DMRC) has written to the Centre and Delhi government for infusion of funds in the public sector undertaking which will enable it to pay the “outstanding amount” to Reliance Infrastructure’s Delhi Airport Metro Express Private Limited (DAMEPL) under terms of the May 2017 arbitral award, Attorney General of India (AG) R Venkataramani informed the Delhi High Court Monday.
Appearing for the first time in the matter, Venkataramani referred to the additional affidavit filed by DMRC which reads, “… It is expected that both Governments will respond in terms of their respective liabilities under Metro Policy, 2017, consequently any further directions in regard to execution of the Award will have to necessarily await deliberations by both Governments. Endeavour will certainly be made to pursue the subject expeditiously.”
The Centre and Delhi governments are the two equity partners of DMRC. Till now, DMRC has paid approximately Rs 2,600 crore to DAMEPL, the additional affidavit states. It has now sought Rs 3,500 crore from both equity partners for payment of balance amount.
The AG submitted before a single judge bench of Justice V Kameswar Rao that the “importance of complying with the decree is well taken but equally important is concerns of Delhi Metro”. The additional affidavit states that if DAMEPL’s prayers are granted at this juncture, “operations of DMRC would come to complete standstill, which would be prejudicial to public interest…” Referring to the affidavit, the AG submitted that DMRC is reeling under financial crisis and if it pursues raising of any loan, it will not be able to serve the interest and loan repayment and may fall into a financial trap.
The AG requested that the matter be deferred by 2 weeks so modalities with respect to payment of the outstanding amount in terms of the award can be submitted before the HC.
The counsel appearing for DAMEPL submitted that as per the order of September 6, the HC had directed DMRC to pay the balance amount in terms of the award in four weeks and listed the matter for hearing on October 10. The counsel for the petitioner said that in previous hearings, the HC did not get into the mechanism by which DMRC will raise funds to pay the balance amount. “What were they doing for four weeks?” he said.
After hearing the parties, the HC took on record the additional affidavit filed by DMRC and adjourned the matter to October 31.
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