How will you pay DAMEPL: Delhi HC to Metro

While the Reliance Infra-led company is praying that the DMRC be asked to forthwith deposit Rs 6,305.40 crores into the Project Escrow Account, the DMRC has earlier told the court it has only a total of 6,208.03 crores in its bank accounts which includes about Rs 1,014.69 crore earnings.

The 2017 arbitral award, which pertains to the Delhi Airport Metro Express Line, was upheld by the Supreme Court in September 2021. Section 89 of The Metro Railways Act, 2002 states that only earnings of the metro railway administration can be attached by a court in the execution of a decree or order.

“The non-payment of Termination Payment since 2013 (for over 8 years) by the Judgement Debtor [DMRC] has caused immense damage to the Decree Holder [DAMEPL] and its Promoter, Reliance infrastructure Limited. Reliance Infrastructure Limited has infused/funded Rs 2,513.04 crore to the DAMEPL up till March 31, 2018, by taking loans from public sector banks. Proceedings for liquidation have been initiated against Reliance Infrastructure Limited,” the DAMEPL said in the latest application before the court.

It further said that Reliance Infra has been suffering an immense and irreparable loss daily despite the award being upheld by the Supreme Court. The DAMEPL in the application has further made it clear that it is not agreeable to any assignment or takeover of debt by the DMRC.

In the affidavit filed before the court earlier this month, the DMRC said it has a total of 1642.69 crore earnings but out of it Rs 514 crores is committed liability which is “due to employees on account of leave salary and post-retirement expenses” and Rs 114 crore is a portion of security deposits of smart cards which is refundable to the commuters.

The rest of the 6,208.03 crores available with the DMRC is already earmarked for its various projects, within and outside Delhi, according to the details submitted before the court. A major chunk – Rs 2,869.33 Crores – has been set aside for project phases III and IV of the Metro.

Arguing against making the payment at once to the DAMEPL, the DMRC on December 22 had called it a matter involving national interest and argued before the court that there will be a huge issue if the Metro is stopped.