In a major victory for the debt-laden Reliance Group, ADAG, led By Anil Ambani, the Supreme Court has upheld an arbitral award that went in favour of the beleaguered group.
The amount totaling over Rs 4,600 crore including interest will help Reliance Infra to pare its debt. A two judge bench of the Supreme Court dismissed a plea by DMRC and held the arbitral award to be valid.
Anil Ambani is facing personal insolvency in a case filed by SBI even as the bankruptcy proceedings against his telecom firm R-Com are underway.
Reliance Infrastructure’s unit had in 2008 entered into a contract with Delhi Metro for running the country’s first private city rail project till 2038. Following disputes over fee and operations in 2012, Ambani’s firm stopped operating the capital’s airport metro project and initiated an arbitration case against Delhi Metro alleging violation of contract and sought a termination fee.
(With inputs from Bloomberg)
