Following a Supreme Court directive, MMRDA deposited 50 per cent of the Rs 11.69 billion arbitration award in a case related to project cost disputes with MMOPL, which operates Mumbai’s first metro line. The Bombay High Court had earlier asked MMRDA to pay the full award by 15 July 2025.

The arbitration award—amounting to Rs 9.92 billion—was granted in August 2023 by a three-member tribunal. MMRDA had contested the order under Section 34 of the Arbitration and Conciliation Act, but the Bombay High Court upheld the award in MMOPL’s favour.

The cost of the 12-km Versova–Andheri–Ghatkopar corridor project had nearly doubled from the initial estimate of Rs 23.56 billion to Rs 43.21 billion, triggering disputes.

MMOPL, a joint venture with Reliance Infra holding 74 per cent and MMRDA the remaining 26 per cent, was awarded the project in 2007 under a public-private partnership (PPP) framework. The project was India’s first metro initiative executed on a PPP model.

Financed by a consortium led by Canara Bank, MMOPL faced further financial strain, leading to insolvency proceedings by SBI and IDBI Bank in 2023. The petitions were later withdrawn in April 2024 after a one-time settlement was reached. Meanwhile, National Asset Reconstruction Company (NARCL) had submitted a bid of Rs 10.63 billion in late 2024 to acquire Rs 12.26 billion of stressed loans from the MMOPL consortium.

News source: Business Standard