Reliance Infrastructure, a member of the Reliance-Anil Ambani group, has emerged victorious in a long-standing legal battle with West Bengal-based Damodar Valley Corp (DVC). The Calcutta High Court ruled in favour of Reliance Infrastructure in an arbitration case, awarding them a substantial sum of at least Rs 4.05 billion. This judgment is part of a larger award totalling approximately Rs 13.54 billion. The awarded amount encompasses the release of an Rs 3.54 billion bank guarantee by DVC, a government-owned enterprise.
The dispute originated over a decade ago when Reliance Infrastructure secured a contract worth Rs 37.50 billion to establish a thermal power project in Raghunathpur, West Bengal. The project faced numerous challenges, leading to disputes and delays. Damodar Valley Corp sought damages from Reliance Infrastructure, but the company contested these claims. Eventually, an arbitration tribunal sided with Reliance Infrastructure, a decision that was subsequently upheld through several rounds of court proceedings.
In response to the ruling, Reliance Infrastructure stated in a filing with the Bombay Stock Exchange (BSE) that the High Court had validated the majority of the award, amounting to Rs 13.54 billion, inclusive of accrued interest. This sum also incorporates the Rs 3.54 billion bank guarantees that DVC had returned to Reliance Infrastructure as directed by the Arbitral Tribunal. Consequently, Reliance Infrastructure is poised to receive the remaining balance of Rs 4.05 billion from DVC, marking the resolution of this protracted legal dispute.
