Sanction to attach properties of DMRC not possible: Centre tells Delhi HC

The Delhi High Court on Thursday was informed by the Centre that it cannot give sanction for attachment of properties of Delhi Metro Rail Corporation (DMRC) for repaying unpaid arbitral award to Delhi Airport Metro Express Private Ltd (DAMEPL), owned by Reliance Infrastructure, as it would bring the city to a halt.

The High Court had on Monday directed the Centre to decide whether it proposes to give sanction for the attachment of movable and immovable assets of the DMRC.

The Centre has made its submission to the court through an affidavit filed by Joint Secretary of the Ministry of Housing and Urban Affairs.

It said that giving sanction will cause significant inconvenience to the public and impact law and order in the national capital.

"It is submitted that sanction for attachment of the properties of the DMRC cannot be accorded by the answering respondent since that would result in closure of the DMRC and bring the city of Delhi to a halt. Such a situation will cause significant inconvenience to the public and impact law and order in the city. The answering respondent, being the custodian of the public good, cannot permit such circumstances to ensue," the affidavit stated.

A bench of Justice Yashwant Varma, while directijg the competent authority of DMRC to attend the proceedings on Friday so that a "holistic view" can be taken with respect to the funds available with the corporation, adjourned the matter for March 3.

The court also asked the counsel for Centre to place on record the formal order passed by it deciding not to accord the sanction for attachment of properties.

During the last hearing, the judge had said: "...Before the court proceeds to rule on the issue of whether the circumstances warrant the corporate veil of the DMRC be lifted, it would appear expedient to call upon the Union government to take a decision on whether it proposes to accord sanction for the attachment of the movable and immovable assets of the corporation for the purpose of the satisfaction of the amount payable under the award."

The HC on February 17 issued a notice to the Centre and the Delhi government in the case.

Justice Varma had initiated proceedings against the Ministry of Housing and Urban Affairs and the Delhi government on the DAMEPL's petition seeking enforcement of the arbitration award dated May 11, 2017.

An amount of Rs 1,678.42 crore of the arbitral award has already been paid and Rs 6,330.96 crore is yet to be paid by DMRC.

Attorney General R. Venkataramani had on January 31 told the high court that if the Centre agrees to an interest-free subordinate debt on behalf of the DMRC to pay Reliance Infra, the Delhi government will follow suit.

Earlier in January this year, the DMRC had informed the court that it has requested the Centre and Delhi government for interest-free subordinate debt of Rs 3,565.64 crore from each for repaying the DAMEPL.

--IANS

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