InvestorQ : Can you tell me about the recent case that Reliance Infra of Anil Ambani group has won and what is the implications?
vidhya Laxmi made post

Can you tell me about the recent case that Reliance Infra of Anil Ambani group has won and what is the implications?

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sarah Leo answered.
3 months ago
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It is not exactly a legal victory but the Supreme Court has allowed a special leave petition challenging the judgment of the Delhi High Court. This petition was filed by DAMEPL, an SPV floated by Reliance Infra which won the Delhi Metro contract in 2017. Then, the contract was worth Rs.2,800 crore. Now, if you add up the interest and other costs, the total amount would be closer to Rs.5,000 crore. DMRC will have to pay this amount to Reliance Infra.

This money flow will help the Anil Ambani group company pay off most of its loans. For example, Reliance Infra has consolidated debt of Rs.14,260 crore and nearly 40% of that debt can now be defrayed. The contract was to operate the private city rail project till 2038. Reliance Infra had ceased operations of the project in 2012 on disagreements over fees. Subsequently, Reliance Infra had filed an arbitration complaint against DMRC.

The SPV had borrowed Rs.1,600 crore from banks for the project, which has now burgeoned to Rs.5,000 crore. The SPV had also rescinded the contract on the grounds that the deal was not viable due to defects in the civil structures constructed by the Delhi Metro Rail Corporation.

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