Shares of Reliance Infrastructure fell 20 percent on April 10 and were locked in the lower circuit at Rs 227.4, after the Supreme Court ordered its airport metro arm to refund arbitral award payments made by the Delhi Metro Rail Corporation (DMRC).
The Supreme Court accepted DMRC’s curative petition and overturned its earlier ruling, which said that the public transporter was liable to pay about Rs 8,000 crore to Delhi Airport Metro Express Pvt Ltd (DAMEPL).
The bench, comprising Chief Justice of India DY Chandrachud, Justices BR Gavai and Surya Kant, directed that Reliance Infra unit to refund the money deposited by DMRC.
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What happened earlier?
The case stems from DMRC not paying termination fees to DAMEPL, a company owned by Anil Ambani's Reliance Infrastructure. DMRC had ended a contract to rung the airport metro line in the national capital but continued using the project's assets and revenues since July 2013.
An arbitration panel favoured DAMEPL, ordering DMRC to pay Rs 2782.33 crore plus interest. The award was upheld by the Delhi High Court and then the Supreme Court.
As of February 14, 2022, DMRC had paid Rs 1,678.42 crore of the outstanding amount, leaving Rs 8009.38 crore in dues. By February 2023, the pending amount was reduced to Rs 6330.96 crore.
DMRC's curative petition had challenged the 2021 Supreme Court order.
So far this year, the Reliance Infrastructure stock has gained 8 percent against a 4 percent rise in the Nifty 50 index
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