The Delhi Metro Rail Corporation (DMRC) is incurring an additional interest burden of Rs. 680 crores due to a 19-month delay in executing a Supreme Court decree. As of March 31, 2023, the total amount owed to Delhi Airport Metro Express Pvt Ltd (DAMEPL) stands at Rs. 4675 crores. The hearing on DMRC’s Review Petition is scheduled for March 29, 2023.
Earlier, on March 17, 2023, the Delhi High Court ordered DMRC, along with the Government of India and the Delhi Government, to ensure payment of the remaining amount under the Award to DAMEPL at the earliest. The Court directed both governments to provide a sovereign guarantee or subordinate debt to DMRC by March 31, 2023, so that DMRC could pay the entire amount to DAMEPL by April 30, 2023.
Alternatively, the Court directed the Government of India to return Rs. 3132 crores of funds to DMRC by March 31, 2023, which were transferred out by DMRC to the Government of India and other governments after the March 10, 2022 order of the Delhi High Court. This would enable DMRC to pay the balance amount to DAMEPL immediately.
In case the above options do not work out, the accounts of DMRC as of March 17, 2023, would automatically be attached on March 31, 2023, and the Court would consider further orders to the Government of India and Delhi Government to execute the Award.
DMRC sought a review of the March 17, 2023 order, which was heard by the Delhi High Court on March 23, 2023. The Court did not grant any relief to DMRC and asked it to return on March 29, 2023, in case of any crisis.
The 19-month delay in honoring the Award has put an additional interest burden of Rs. 680 crores on DMRC, costing them an extra Rs. 1.34 crores daily. Despite this, DMRC has not shown any serious effort to develop a payment plan to pay the remaining Rs. 4675 crores to DAMEPL.
