Delhi Metro issues Rs 2.5k crore refund ultimatum to DAMEPL over SC ruling

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A view of a Delhi Metro train stationed on a platform in New Delhi.

2 min read Last Updated : May 22 2024 | 12:06 PM IST

The Delhi Metro Rail Corporation (DMRC) has issued a final notice to Reliance Infrastructure’s arm, Delhi Airport Metro Express Pvt Ltd (DAMEPL), demanding a refund of Rs 2,599 crore as directed by the Supreme Court of India in its April 10 judgement.


A letter sent by the DMRC dated May 20 read that failure to deposit the refund within 15 days from the date of letter would prompt the public sector undertaking to file a contempt of court case against DAMEPAL, a stock exchange filing by Reliance Infrastructure showed on Tuesday.


The DMRC has asked DAMEPAL to deposit Rs 2,599 crore along with interest at the rate of SBI’s Prime Lending Rate +2 per cent within the timeline.


“DAMEPL is taking appropriate legal advice and relevant disclosure will be made as required. The financial implications are unascertainable at this stage,” the filing said.


The public transport body sent the notice nearly over a month after the Supreme Court overturned its own order delivered three years ago and exempted the DMRC from paying an arbitration award of about Rs 8,000 crore to the Anil Ambani-controlled company’s subsidiary.


On April 10, the top court overturned its 2021 judgement and ordered that “any amount paid by DMRC as part of coercive action has to be refunded and the execution proceedings for the award must be discontinued,” it said.


DMRC had paid Rs 3,300 crore to DAMEPL


“It is clear that following the judgement of the Supreme Court, DAMEPL has no right or claim in respect of the amount deposited by DMRC. The Banks being custodians of such deposits are bound to follow an act in accordance with the direction. The banks do not need any permission, leave or authorisation from any person to hand over the deposits back to DMRC. Any thinking on the part of banks to postpone the discharge of liability for any reason whatsoever would amount to evasive contract and contempt of the Supreme Court,” the May 20 letter read.


Notably, following the apex court’s judgement, Reliance Infrastructure had said that no liability had been imposed on it by the court.


“Reliance Infrastructure wishes to clarify that the Order dated April 10, 2024, passed by the Supreme Court does not impose any liability on the company and the company has not received any money from DMRC/ DAMEPL under the arbitral award,” the firm said in a filing on April 11.

First Published: May 22 2024 | 12:06 PM IST