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The DMRC on Monday informed the Delhi High Court that the Union government will convene a meeting on November 10 with the Government of National Capital Territory of Delhi (GNCTD), DMRC, and leading banks, to discuss how to pay the debt of Rs 4,500 crore to Anil Ambani-owned DAMEPL (Delhi Airport Metro Express Private Limited).
DAMEPL is a Reliance infrastructure arm. Justice V Kameswar Rao said the matter will be heard again on November 18.
The meeting is expected to come out with some proposals and it is prayed that the High Court may pass orders after the outcome of the meeting is placed before the court,” DMRC counsel Tarun Johri submitted before the court.
In the last hearing on October 10, DMRC told the High Court that if Delhi Metro were to raise loans to pay the arbitration award to DAMEPL, it would fall into a 'debt trap'.
The Attorney General for India R Venkataramani, appearing for DMRC in the last hearing, informed the court that the initial plan to raise money through bank loans was given up and DMRC's equity partners (Centre and Delhi government) were approached to pay the money to Reliance infra owned DAMEPL.
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The court gave Delhi Metro two weeks to work out the modalities for payment of the arbitration award to DAMEPL.
DMRC told the court on Monday that the November 10 meeting would help them navigate the situation and they will come up with proposals to settle the debt.
Senior Advocate Jaideep Gupta, appearing for DAMEPL, meanwhile, pointed out that the Delhi Metro has failed to comply with the court orders once again.
In the last six months, this is the fourth time the DMRC has asked for an extension to pay its debt.
A source in the know of the matter told Business Standard that the meeting between the Centre, Delhi government, and DMRC on 10th November will be to attain consensus and discuss modalities of DMRC’s repayment plan to the Reliance Infra subsidiary.
The official added that the core objective of the meeting would be to finalise proposals on the bail-out plan for DMRC and the scope of funding between the central and state government, adding that it is “almost certain” that the funds would have to come from the two stakeholders.
In September, the Delhi High Court directed the DMRC to pay the money it owes to DAMEPL in four weeks in compliance with the 2017 arbitral award, in connection with the Delhi Airport Metro Express Line.
The entire arbitral award of Rs 4,500 crore was to be paid to DAMEPL by 4 October. Failing this, the court said it would summon the DMRC MD.
Earlier in March 2022, the Delhi High court, after hearing the execution plea of DAMEPL, passed an order on 10 March 2022, directing DMRC to pay the entire amount in two equal installments by 30 April and 31 May 2022. But DMRC asked for an extension to pay the amount.
DAMEPL again approached the Delhi HC to enforce the order dated 10 March. The court then passed an order on 20 June directing DMRC to make the full payment by 5 August 2022. DMRC had again asked for an extension.
DMRC owes close to Rs 7,100 crore out of which it has already paid 2,600 as of September 6. It now owes an outstanding amount of Rs 4,500 to DAMEPL.
