The Mumbai Metropolitan Region Development Authority (MMRDA) has deposited Rs 560.21 crore in the Bombay High Court following a Supreme Court directive related to an arbitration case involving the Mumbai Metro One Private Limited (MMOPL). This deposit represents 50% of the total arbitration amount of Rs 1,160 crore that MMOPL was awarded in a dispute against MMRDA. The court’s order was issued in response to a Special Leave Petition filed by MMRDA, which challenged an earlier ruling where the Bombay High Court directed the authority to pay the entire award amount by July 15, 2025.
In compliance with the Supreme Court’s directive, MMRDA deposited the specified amount with the court’s registry. The funds will reportedly be used by MMOPL to reduce its outstanding debts. The original dispute traces back to August 2023, when a three-member arbitral tribunal awarded MMOPL Rs 992 crore due to escalations in project costs and other contractual issues concerning the Versova-Andheri-Ghatkopar metro corridor, India’s first metro project. Initially estimated at Rs 2,356 crore, the cost of constructing the 12-km elevated line increased to Rs 4,321 crore.
MMRDA contested this arbitration award under the Arbitration and Conciliation Act of 1996, but the Bombay High Court upheld the tribunal’s decision. MMOPL, a joint venture comprising Anil Ambani’s Reliance Infrastructure and MMRDA, holds a 74% stake and was originally awarded the project in 2007 through a competitive bidding process. The project received financing from a consortium of banks led by Canara Bank. In November 2024, these lenders began the process of offloading Rs 1,226 crore in loans, with the National Asset Reconstruction Company Ltd submitting an anchor bid of Rs 1,063 crore to acquire the distressed debt.
Original Source: https://www.india.com/business/days-after-ed-raids-big-win-for-anil-ambani-mmrda-deposits-rs-5600000000-in-metro-arbitration-case-with-reliance-infra-7978262/
Category: Business,Anil Ambani,anil ambani news,Reliance Infra,reliance infra shares,Reliance Infrastructure,Reliance Infrastructure shares
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Publish Date: 2025-07-29 18:09:00
