The Supreme Court on April 10 reversed an earlier ruling that upheld an arbitration award of around Rs 8,000 crore to Reliance Infra's subsidiary from DMRC
Shares of Anil Ambani's Reliance Industrial Infrastructure Ltd (RIIL) fell 20 percent on April 12 to hit the lower circuit yet again. The stock declined sharply after the Supreme Court overturned its order that upheld an arbitral award to RIIL in a dispute with the Delhi Metro Rail Corporation (DMRC).
Accepting DMRC’s curative petition, the court on April 10 overturned its ruling which said the public transporter was liable to pay about Rs 8,000 crore to Delhi Airport Metro Express Pvt Ltd (DAMEPL), a company owned by Reliance Infrastructure.
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.
The case started with DMRC not paying termination fees to DAMEPL. DMRC ended a contract to run the airport metro line in the national capital but continued using the project's assets and revenues since July 2013.
An arbitration panel ordered DMRC to pay Rs 2782.33 crore plus interest to DAMEPL, and the award was upheld by the Delhi High Court and then the Supreme Court. Later, DMRC in a curative petition challenged the 2021 Supreme Court order.
Following the latest SC order, Reliance Infra issued a clarification saying, "We inform you that the Hon'ble Supreme Court has allowed the Curative Petition filed by DMRC against DAMEPL."
"Reliance Infra wishes to clarify that the order dated April 10, 2024, passed by the SC does not impose any liability on the company and the company has not received any money from DMRC/DAMEPL under the arbitral award," the company said.
At 12.38 pm, Reliance Infra shares were trading at Rs 202.60 on the National Stock Exchange (NSE), down nearly 11 percent from the previous close.
In the last five sessions, the stock has lost 30 percent. Both BSE and NSE have put the securities of Reliance Infra under the short-term Additional Surveillance Measure (ASM) framework.
Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices. 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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