Will fall into debt trap, affect commuters if loans are raised to pay Anil Ambani's DAMEPL: DMRC to Delhi High Court

The Delhi Metro Rail Corporation Monday told the Delhi High Court on Monday that if it raises loans to pay the arbitration award to Anil Ambani owned Delhi Airport Metro Express Private Limited (DAMEPL) it would fall into a debt trap which will affect millions of commuters.

Attorney General for India (AG) R Venkataramani, appearing for DMRC, said that though it is important to comply with the decree for payment of award to Reliance Infrastructure owned DAMEPL, but equally important are the concerns of Delhi Metro.

The submissions were made before the single-judge Justice V Kameswar Rao in a plea by DAMEPL seeking execution of an arbitration award from May 2017. The firm has claimed that Delhi Metro has to pay over ₹4,000 crores to it.

The AG told the court that since the DMRC has dropped the plan to raise loans, it has now approached its two equity partners – Central and Delhi governments – for payment of the arbitral award.

“Anything that is done in regards to activity and operation of DMRC will have serious effects. Millions will be told that they can’t use the metro if adverse orders are passed… Equity partners are applying their minds to the issue. From my point of view as Attorney General, I will take this matter as far as possible to ensure that decree is taken care of… Both governments will come up with a way,” the AG argued.

Senior Advocate Jaideep Gupta, appearing for DAMEPL, told the Court that the manner in which payments were to be made has been laid down by the High Court in its order which has been confirmed by the apex court as well.

Gupta argued that the matter is being dragged and, in each hearing, a different stand is being taken about how the money will be paid.

“Every time they come up with one reason or the other. First, they said they are awaiting loans from banks. Several months were taken and then they said sovereign guarantee will be arranged and now they are saying they are talking with stakeholders. Time has been given from March till now and nothing has progressed,” he said.

Gupta further said that threats can’t be held out to courts that the public will be affected if orders are passed and that in a commercial matter like this, his client's interests are also very important.

However, on the AG’s request, the Court deferred the hearing for two weeks and asked him to ensure that modalities for payment to DAMEPL are placed on record by the next date.

The matter will now be considered on October 31.

The award under consideration arose out of an agreement signed between the DMRC and DAMEPL in 2008 to develop and operate the orange line of the Delhi Metro that connects Indira Gandhi International Airport's Terminal-3 to Dwarka Sector-21.

In March this year, the High Court had directed DMRC to pay the entire balance amount to the DAMEPL along with interest in two equal installments, by May 31. This order was upheld by the Supreme Court on May 5.

DAMEPL has said that despite the directions of the High Court, DMRC has only made a payment of ₹166.44 crore. It claimed that it is yet to get the payment of the remaining ₹4427.41 crore.

The firm has, therefore, asked the Court to attach DMRC’s bank accounts and other such assets.