The court directed both governments to provide sovereign guarantee/subordinate debt to DMRC by 31 March 2023, or alternatively, for the Government of India to return funds amounting to Rs 3132 crore to DMRC to enable payment to DAMEPL.
Delhi High Court has ordered the Delhi Metro Rail Corporation (DMRC), along with the Governments of India and Delhi, to pay the remaining amount owed to Delhi Airport Metro Express Pvt Ltd (DAMEPL) under an award, with the payment to be made by April 30, 2023.
The court directed both governments to provide sovereign guarantee/subordinate debt to DMRC by 31 March 2023, or alternatively, for the Government of India to return funds amounting to Rs 3132 crore to DMRC to enable payment to DAMEPL.
If these options do not work out, DMRC’s accounts as of 17 March 2023, will be attached on 31 March 2023, and the court will consider further orders to execute the award. DMRC sought a review of the order but was not granted any relief by the court. The delay of 19 months has put an additional interest burden of Rs. 680 crores on DMRC.
Despite having sufficient funds available, DMRC has prioritized other financial obligations over paying the balance of Rs. 4675 crore to DAMEPL. The court has raised concerns over DMRC’s intentions, as it has shown all amounts received from governments as encumbered, potentially delaying the payment of the awarded sums for years.
