DMRC would fall into a debt trap if it raises loans to pay DAMEPL: AG

The Delhi Metro Rail Corporation (DMRC) on Monday told the Delhi High Court that if Delhi Metro were to raise loans to pay the arbitration award to Anil Ambani-owned DAMEPL (Delhi Airport Metro Express Private Limited), it would fall into a 'debt trap'.

Attorney General for India R Venkataramani, appearing for DMRC in the case of Delhi Metro versus Reliance Infra, informed the court that the initial plan to raise money through loans has now been given up and DMRC's equity partners (Centre and Delhi government) have now been approached to pay the money to Reliance infra owned DAMEPL.

The court has now given the Delhi Metro two weeks to work out the modalities for payment of the arbitration award to DAMEPL. The case will now be heard on October 31.

In September, the Delhi High Court directed the DMRC to pay the money it owes to DAMEPL in four weeks in compliance with the 2017 arbitral award, in connection with the Delhi Airport Metro Express Line.

The entire arbitral award of Rs 4,500 crore was to be paid to DAMEPL by 4 October. Failing this, the court said it would summon the DMRC MD.

DMRC has yet again failed to comply with the court's order on Monday. Up till now, the court has granted three extensions to DMRC to pay the amount it owes to  DAMEPL.