SC to Hear DMRC Contempt Case
ECONOMY & POLICY

SC to Hear DMRC Contempt Case

The Supreme Court is set to hear a contempt petition filed by the Delhi Metro Rail Corporation (DMRC) against Reliance Infrastructure-led Delhi Airport Metro Express Private Limited (DAMEPL). The case revolves around a disputed arbitration award of Rs 2,800 crore that DMRC owes DAMEPL, with allegations that Reliance Infra has not adhered to previous court directives on the matter.

The dispute traces back to the termination of the Delhi Airport Metro Express Line contract in 2012, which Reliance Infra claims was due to structural defects in the line, holding DMRC responsible. An arbitration tribunal awarded Rs 4,600 crore to DAMEPL in 2017. Subsequently, DMRC made partial payments but remains in arrears of Rs 2,800 crore, a situation that has escalated to a contempt plea.

DMRC, in its filing, has sought relief from the apex court to address Reliance Infra's alleged non-compliance. The legal proceedings are critical, as DMRC faces significant financial constraints, and the payment obligation could impact its operations and urban transportation projects. The case highlights broader concerns about public-private partnerships (PPPs) in infrastructure, particularly regarding the clarity of contractual obligations and mechanisms for dispute resolution.

Reliance Infra argues that DMRC’s financial obligations should not be deferred further, emphasizing the need for timely restitution to sustain investor confidence in India's infrastructure sector. The matter has garnered widespread attention, as the outcome could set a precedent for resolving similar high-stakes disputes in the future.

As urban infrastructure remains a priority in India, the SC’s decision will be pivotal in shaping the operational and financial frameworks governing key projects, ensuring accountability and efficient resource allocation. The judgment is expected to have far-reaching implications for public transport systems and legal governance in PPP ventures.

The Supreme Court is set to hear a contempt petition filed by the Delhi Metro Rail Corporation (DMRC) against Reliance Infrastructure-led Delhi Airport Metro Express Private Limited (DAMEPL). The case revolves around a disputed arbitration award of Rs 2,800 crore that DMRC owes DAMEPL, with allegations that Reliance Infra has not adhered to previous court directives on the matter. The dispute traces back to the termination of the Delhi Airport Metro Express Line contract in 2012, which Reliance Infra claims was due to structural defects in the line, holding DMRC responsible. An arbitration tribunal awarded Rs 4,600 crore to DAMEPL in 2017. Subsequently, DMRC made partial payments but remains in arrears of Rs 2,800 crore, a situation that has escalated to a contempt plea. DMRC, in its filing, has sought relief from the apex court to address Reliance Infra's alleged non-compliance. The legal proceedings are critical, as DMRC faces significant financial constraints, and the payment obligation could impact its operations and urban transportation projects. The case highlights broader concerns about public-private partnerships (PPPs) in infrastructure, particularly regarding the clarity of contractual obligations and mechanisms for dispute resolution. Reliance Infra argues that DMRC’s financial obligations should not be deferred further, emphasizing the need for timely restitution to sustain investor confidence in India's infrastructure sector. The matter has garnered widespread attention, as the outcome could set a precedent for resolving similar high-stakes disputes in the future. As urban infrastructure remains a priority in India, the SC’s decision will be pivotal in shaping the operational and financial frameworks governing key projects, ensuring accountability and efficient resource allocation. The judgment is expected to have far-reaching implications for public transport systems and legal governance in PPP ventures.

Next Story
Real Estate

YEIDA Unveils 20 Plots in New Housing Scheme Across Three Sectors in Noida

To encourage residential development, the Yamuna Expressway Industrial Development Authority (YEIDA) introduced a new group housing scheme featuring 20 plots across Sectors 17, 18, and 22D. The scheme includes six plots in Sector 17, five in Sector 18, and nine in Sector 22D, with plot sizes ranging from 11,513.72 square metres to 89,034 square metres. In Sector 17, the plots vary between 11,513.72 square metres and 24,282 square metres, with a base price of Rs 32,375 per square metres. In Sector 18, all plots are uniformly sized at 16,188 square metres, while Sector 22D offers the most vari..

Next Story
Real Estate

Dallas Tech Centre to Lease Premises to TCS in Visakhapatnam

The works to set up Tata Consultancy Services (TCS) facility in Madhurawada IT SEZ are progressing swiftly, following a proposal from Dallas Technology Centre (DTC) to lease its premises to TCS along with other arrangements. The state industries and commerce department issued a government order regarding this proposal. DTC has requested an occupancy certificate, permission to sub-lease the premises to TCS, and the allocation of an additional 1,600 sq m at the original rate of Rs 6,720 per sq m. Previously, the government had allocated Plot No A, measuring 7,774.90 sq m on Hill No 2 in Rushikon..

Next Story
Infrastructure Energy

LNG Imports Rise 10.8% in October as Domestic Gas Output Drops 1.6%

India’s natural gas landscape in October 2024 showed a blend of growth and challenges. Liquefied natural gas (LNG) imports experienced a significant increase of 10.8 per cent year-on-year, reaching 2941 million standard cubic meters (MMSCM), while domestic production saw a decline of 1.6 per cent, totaling 3111 MMSCM. According to the latest report from the Petroleum Planning & Analysis Cell (PPAC), the country’s growing dependence on imported LNG to meet rising energy demands was evident, as domestic production struggled to keep pace. In October, the total natural gas available for sale ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000