Divert funds, take loans: HC orders Delhi Metro to pay DAMEPL

Justice Suresh Kumar Kait in a judgement recorded that the DMRC has a total of Rs 1,452.10 crore with it, and directed it to keep aside an amount of Rs 628 crore out of the total amount for its statutory expenses and pay the rest to DAMEPL within two weeks.

For the remaining outstanding amount, the court directed the DMRC to make the payments in two equal instalments within two months. “The first instalment shall be paid on or before 30.04.2022 and the second instalment shall be made on or before 31.05.2022,” it said.

In 2008, the DMRC had signed a contract with the DAMEPL, related to the design, installation, commissioning, operation and maintenance of the line. The DMRC in 2012 invoked arbitration after DAMEPL terminated the concession agreement on the ground that defects pointed out in construction were not cured by DMRC within the stipulated 90 days. The Supreme Court in September upheld the 2017 arbitral award favouring DAMEPL.

The Reliance Infra-led company in its petition had sought Rs 8,009.83 crore from the DMRC. A sum of Rs 1,678.42 crore was paid by the DMRC by February 14. While objecting to the calculation made by DAMEPL, the DMRC had told the court that a total of Rs 5,694.25 crore are available with it — Rs 1,452.10 crore under DMRC funds, Rs 2,681.29 crore under project funds and Rs 1,560.86 crore of Bihar and Maharashtra governments for constructing Metro rail in their states.

The DMRC had argued before the court that funds earmarked for construction of Metro lines cannot be attached and also rolling stock, tracks, plant, machinery, building, etc. cannot also be attached in view of the bar under Section 89 of The Metro Railways Act, 2002.