Bombay HC allows Mumbai Metro One to charge Rs 10-40 fare

HC dismisses Maharashtra govt's plea against R-Infra's move to increase fares; court wants fare fixation committee to take a decision within 3 months

Mumbai commuters using the 11.4-km Metro rail between Ghatkopar and Versova will have to shell out more for their journey. The Bombay High Court on Thursday allowed Reliance Infrastructure (R-Infra)-led Mumbai Metro One Private Limited (MMOPL) to charge higher fares, between Rs 10 and Rs 40. This would mean  from Saturday the fares might double in some cases, as the current fare band is between Rs 10 and Rs 20. MMOPL had started operations on June 8, 2014.

The Maharashtra government and the state undertaking, Mumbai Metropolitan Region Development Authority (MMRDA), had approached the high court ,challenging the higher fares proposed by R-Infra. The court said the Fare Fixation Committee (FFC) will have necessary powers to revise fares, and allowed it to take a decision in this regard in three months, beginning January 31. R-Infra, in its argument, had told the high court it was losing up to Rs 85 lakh a day though nearly 250,000 commuters use the Metro because the government wanted to cap the fare at Rs 13 for the longest distance. MMOPL said even fares of Rs 10 to Rs 40 will lead to a daily loss in excess of Rs 62 lakh.

The bench said granting a stay to Thursday’s order till January 31 would mean a loss of Rs 23 lakh a day for 23 days.

MMRDA had said the R-Infra-led consortium had agreed on the structure whereby fares were to be Rs 9 (up to three km), Rs 11 (from three to eight km) and Rs 13 (for more than eight km). MMOPL had, however, fixed the  fares as Rs 10, Rs 20, Rs 30 and Rs 40.

An MMRDA spokesman said, “The division bench of the Bombay High Court today (on Thursday) directed the central government to appoint a Fare Fixation Committee before January 31 to discuss the tariffs for different distances on the corridor. The division bench further observed that such fare fixation committee will decide  within three months from its appointment. Meanwhile, Reliance Infra have been allowed to increase the fares ranging between Rs 10 and Rs 40.”

MMRDA, a stakeholder in the R-Infra-led consortium, had earlier filed a petition against R-Infra challenging the hike in fares. However, a single-judge bench on June 24 had dismissed the petition. Subsequently, MMRDA had appealed before the division bench led by the chief justice.