No sanction for attachment of DMRC's operational assets: Centre to Delhi HC

The Centre told the Delhi High Court on Friday that it has not given a sanction for the attachment of DMRC's operational assets while hearing the payment of 2017 arbitral dues to Reliance Infrastructure-arm Delhi Airport Metro Express Private Ltd (DAMEPL), by Delhi Metro Rail Corporation (DMRC).

Justice Yashwant Varma said he will have to see the extent to which Section 89 of the Metro Railways (Operation and Maintenance) Act, 2002 applies and, notwithstanding Section 89, what directions can be given for execution of the arbitral award.

Section 89(1) says that “no rolling stock, metro railway tracks, machinery, plant, tools, fittings, materials or effects used or provided by a metro railway administration for traffic on its railway, or its stations or workshops, or offices” will be liable to be taken for execution of any order of any court or of any local authority or person having by law the power to attach the property without the previous sanction of the Central Government.

Subsection 2 states that nothing in sub-section (1) can be construed to affect the authority of any court to attach the earnings of the metro railway administration in the execution of an order.

The court also said that the Court won't consider DMRC's future liabilities/provisions.

DMRC filed an affidavit stating that as of now they have Rs 1,452 crores in the bank.

The Court asked how DMRC has come down from Rs 5700 crores to Rs 1,452 crores. DMRC was asked to prepare a chart showing the financial change over the last year and produce it before the court in the afternoon.

In the afternoon, DMRC counsel explained how DMRC has been able to survive over the past couple of years despite Covid related impact and yet paid around Rs 920 crore to DAMEPL during the last year, out of its Operations and Maintenance (O&M) funds.

The matter has been posted for hearing on March 7. DAMEPL counsel would briefly address arguments on piercing the corporate veil of DMRC and Union and Delhi Government's counsel would respond in the next hearing.