Reliance Infrastructure, a subsidiary of the Reliance-Anil Ambani group, has won a Rs 405 crore arbitration award after the Calcutta High Court ruled in its favor in a dispute with West Bengal-based Damodar Valley Corp (DVC).
The overall award is worth around Rs 1,354 crore, including a bank guarantee of Rs 354 crore provided by DVC, a public sector enterprise. DVC had previously released the bank guarantee and paid the business Rs 595 crore.
Rel Infra was awarded a contract to build a thermal power plant in Raghunathpur, West Bengal, for Rs 3,750 crore more than ten years ago. DVC sought damages from Rel Infra after the project experienced multiple disagreements and delays. Rel Infra, on the other hand, disputed this, and an arbitration tribunal sided with the firm. Following multiple rounds of judicial proceedings, Rel Infra is now scheduled to get the remaining Rs 405 crore from DVC.
In a filing with BSE, Rel Infra said the HC, ?except for certain issues, has upheld the majority of the award to the extent of Rs 1,354 crore, including interest till date and includes bank guarantees of Rs 354 crore which were returned by DVC to the company at the direction of the Arbitral Tribunal.?
According to the company's statement, Rel Infra is reviewing the verdict and will take appropriate action.
