Take over servicing of all debt liabilities of RInfra unit: HC to DMRC

RInfra said that DMRC had been directed to pay this amount to a consortium of banks, by March 31, to ensure that no account of DAMEPL turns NPA

The Delhi High Court has directed the Delhi Metro Rail Corporation (DMRC) to take over the servicing of all debt liabilities of Reliance Infrastructure (RInfra) subsidiary Delhi Airport Metro Express Pvt Ltd (DAMEPL) amounting to Rs 16.18 billion, RInfra said on Tuesday.

The company said 11 banks, who had lent to DAMEPL to run the Delhi Airport Metro Express line, will benefit from the latest High Court order.

"The division bench of Justices Sanjiv Khanna and Chander Shekhar passed the interim order on the Section 37 application filed by DMRC," the Mumbai-headquartered RInfra said in a statement.

"As per the order, DMRC will have to start servicing the DAMEPL debt to 11 banks who had lent to the infrastructure major's subsidiary to run the Delhi Airport Metro Express line.

"The DMRC had challenged a March 6, 2018 Delhi High Court single judge order upholding the Rs 53 billion arbitral award, including interest, in favour of DAMEPL," it added.

Late last month, RInfra said the Delhi High Court had directed the DMRC to pay Rs 3.06 billan ion as immediate interim relief to the company.

RInfra said that DMRC had been directed to pay this amount to a consortium of banks, by March 31, to ensure that no account of DAMEPL turns a non-performing asset (NPA), or bad loan.