DMRC to deposit Rs 1,000 crore in escrow account in arbitration case versus Reliance Infra

Delhi Metro Rail Corporation (DMRC) has disputed the payable amount in the arbitral dispute with Reliance Infra. Presenting its case in the Delhi High Court, DMRC has argued that the payable amount is Rs 5,000 crore as against Reliance Infra's claim of Rs 7,100 crore. However, it has agreed to deposit Rs 1,000 crore in an escrow account in the next 48 hours.

The execution petition was filed by the Delhi Airport Metro Express Pvt Ltd (DAMEPL) against DMRC to get the Supreme Court order enforced, which had upheld the Rs 7,100 crore arbitration award in favour of the company.

In its argument, DMRC has also cited a proposal to take over Reliance Infra debt in the project saying that banks may be more “sympathetic” to it.

Over three months have passed since the pronouncement of the order by the Supreme Court in favour of DAMEPL, where the apex court had dismissed the review petition of DMRC.

Aug 2008 - Reliance Infra signed an agreement with DMRC for Delhi Airport Express on a BOT basis.

Oct 2012 - R.Infra arm served notice terminating the agreement.

Oct 2012 - DMRC invoked arbitration clause, sought to initiate arbitration.

May 2017 - Arbitral tribunal awarded damages to R.Infra arm, directed DMRC to pay Rs. 4,662 crore

Mar 2018 - Single Judge Bench of Del HC upheld the award, directed DMRC to pay damages.

Jan 2019 - In a relief to DMRC, a division bench of Del HC set aside the arbitral award.

Feb 2019 - R.Infra arm moved SC to challenge the Del HC decision to set aside the arbitral award.

Sep 2021 – SC upholds arbitral award, holds that DMRC is liable to pay as per the award.