File photo of Anil Ambani, Chairman of Reliance Communication addresses the media during a press conference in Mumbai | Photo: Kamlesh Pednekar
Anil Ambani promoted Reliance Infrastructure on Tuesday said the Delhi High Court has given its subsidiary Delhi Airport Metro Express (DAMEPL) an immediate relief directing Delhi Metro Rail Corporation (DMRC) to pay Rs 3.06 billion to a consortium of banks. The step, the company said, is to ensure that DAMEPL's accounts do not turn into a non performing asset (NPA) by the end of March this year.
"The High Court held that a party successful in arbitration and Section 34 cannot be allowed to become NPA for want of enforcement of the Award. The Court directed that it is just and necessary that the amount sufficient to avert the declaration of the accounts of the Petitioner as NPA should be paid by DMRC to the eleven banks before March 28, 2018," the company said in its statement.
On 6th March, RInfra informed the exchanges the Delhi High Court has upheld its arbitration award of Rs 29.50 billion as compensation along with interest to Delhi Airport Metro Express Private Limited (DAMEPL). RInfra in its 6th March release also added the High Court has also directed DMRC to deposit Rs 35.02 billion in an escrow account within four weeks. Following this, on 20th March the company said its subsidiary DAMEPL moved the Delhi High Court seeking execution of the Arbitration award of Rs 29.50 billion it had won against Delhi Metro Rail Corporation (DMRC).
The company in its statement on Tuesday added, "In case where the accounts have already become NPA, the court has ordered that such minimum amount shall be paid by DMRC for the said accounts to be upgraded and excluded from the purview of being NPA. There is urgency for payments to be made since four banks have already declared the loan account of DAMEPL as NPA and Allahabad Bank has recalled the entire loan of DAMEPL."
RInfra also added, the Delhi High Court, has directed that DMRC would authorize one of its officials to approach Axis Bank, the lead bank, and would ascertain the minimum amount required to be paid to ensure that DAMEPL's account does not become NPA.
In its petition to the High Court, DAMEPL submitted that its entire loan portfolio was on the verge of being declared NPA, which would lead to recall of loan amounts, and which entails a payment of Rs 188.2 million post March-end this year.