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Thursday, September 9, 2021

Relief For Reliance Infrastructure: SC Upholds Rs 4,600 Crore Arbitral Award In Favour of Anil Ambani Company

Relief For Reliance Infrastructure: SC Upholds Rs 4,600 Crore Arbitral Award In Favour of Anil Ambani Company


TCSN Desk ✍️

Delhi 09 Sep 21

Reliance Infrastructure Ltd. on Thursday won a four-year-old battle for control of money from an arbitration award, as the Supreme Court today upheld an arbitral award which went in Anil Ambani-led company’s favour. A bench headed by justice L. Nageswara Rao dismissed a plea by Delhi Metro Rail Corporation (DMRC) and upheld the 2017 arbitration award in favour of debt-laden Reliance Group, ADAG. The amount of over Rs 4,600 crore, including interest, will help the beleaguered group to repay its debt, as per an IANS report.

During the hearing in the matter, the Reliance’s lawyers had contended before the top court that the firm will use the money to pay lenders, IANS reported.

  • In 2008, Reliance Infrastructure’s unit had entered into a contract with DMRC for running the city rail project till 2038, according to IANS report.


  • In 2012, Ambani’s firm stopped operating the capital’s airport metro project, due to disputes over fee and operation. The firm initiated an arbitration case against the DMRC alleging violation of contract and sought a termination fee, as per IANS report.


Reliance will use the money to pay lenders, the company’s lawyers had said during the case hearings, following which the top court had barred banks from marking the company’s accounts as non-performing assets, IANS reported. Commenting on Supreme Court’s verdict on Airport Express Line issue, DMRC Executive Director (Corporate Communications) Anuj Dayal Anuj Dayal said, “The Hon’ble Supreme Court has pronounced judgement in the Airport Metro Express line matter today and the appeal of DAMEPL has been allowed. The copy of the judgement is not yet uploaded on Supreme Court’s website. On receipt of the judgement copy, it will be analysed for future course of action.”