This is an archive article published on March 29, 2023
Draft amendment circulated for inter-ministerial feedback says no earnings, parcels of land of Metro shall be attached
According to Ministry sources, the draft, which was circulated on March 17 with two weeks’ time for feedback, was yet to be finalised and was unlikely to make it to the ongoing Budget session.
Written by Damini Nath
New Delhi | March 29, 2023 06:30 AM IST
2 min read
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DAMEPL had been contracted in 2008 to operate the Delhi Airport line, but terminated the contract in 2012. The company won an arbitral award in 2017 that was upheld by the Supreme Court in 2021 and has moved the Delhi High Court for payment of around Rs 7,000 crore amount. (Representational/File)
The Union Housing and Urban Affairs Ministry has proposed an amendment to the Metro Railways (Operation and Maintenance) Act, 2002 that would prevent attachment of any property or funds of Metro rail administrations across all cities in case of a dispute.
In a draft amendment and background note circulated for inter-ministerial feedback on March 17, the ministry said the need to amend section 89 of the Act was felt after a recent Delhi High Court order that asked the Centre to take a decision on whether the assets of the Delhi Metro Rail Corporation can be attached to pay the pending arbitral award won by Reliance Infrastructure-owned Delhi Airport Metro Express Pvt. Ltd (DAMEPL).
DAMEPL had been contracted in 2008 to operate the Delhi Airport line, but terminated the contract in 2012. The company won an arbitral award in 2017 that was upheld by the Supreme Court in 2021 and has moved the Delhi High Court for payment of around Rs 7,000 crore amount.
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The ministry informed the High Court on March 2 that the permission to attach properties had not been given.In denying the sanction, Housing and Urban Affairs Minister Hardeep Puri had on March 1 written in a note that the Act should be amended to avoid any future attempts to attach Metro properties in such cases.
Section 89 of the Act says “no rolling stock, metro railway tracks, machinery, plant, tools, fittings, materials or effects used or provided by a metro railway administration for the purpose of traffic on its railway, or its stations or workshops, or offices shall be liable to be taken in execution of any decree or order of any court….without the previous sanction of the Central government”. The draft amendment proposes to do away with the sanction of the Central government, outrightly prohibiting any attachment of the assets mentioned. The amendment also adds “earnings or any parcel of land held by Metro rail administration” to the list of assets that cannot be attached.
According to Ministry sources, the draft, which was circulated on March 17 with two weeks’ time for feedback, was yet to be finalised and was unlikely to make it to the ongoing Budget session.
Damini Nath is an Assistant Editor with the national bureau of The Indian Express. She covers the housing and urban affairs and Election Commission beats. She has 11 years of experience as a reporter and sub-editor. Before joining The Indian Express in 2022, she was a reporter with The Hindu’s national bureau covering culture, social justice, housing and urban affairs and the Election Commission. ... Read More