SC to Hear DMRC Contempt Case
ECONOMY & POLICY

SC to Hear DMRC Contempt Case

The Supreme Court is set to hear a contempt petition filed by the Delhi Metro Rail Corporation (DMRC) against Reliance Infrastructure-led Delhi Airport Metro Express Private Limited (DAMEPL). The case revolves around a disputed arbitration award of Rs 2,800 crore that DMRC owes DAMEPL, with allegations that Reliance Infra has not adhered to previous court directives on the matter.

The dispute traces back to the termination of the Delhi Airport Metro Express Line contract in 2012, which Reliance Infra claims was due to structural defects in the line, holding DMRC responsible. An arbitration tribunal awarded Rs 4,600 crore to DAMEPL in 2017. Subsequently, DMRC made partial payments but remains in arrears of Rs 2,800 crore, a situation that has escalated to a contempt plea.

DMRC, in its filing, has sought relief from the apex court to address Reliance Infra's alleged non-compliance. The legal proceedings are critical, as DMRC faces significant financial constraints, and the payment obligation could impact its operations and urban transportation projects. The case highlights broader concerns about public-private partnerships (PPPs) in infrastructure, particularly regarding the clarity of contractual obligations and mechanisms for dispute resolution.

Reliance Infra argues that DMRC’s financial obligations should not be deferred further, emphasizing the need for timely restitution to sustain investor confidence in India's infrastructure sector. The matter has garnered widespread attention, as the outcome could set a precedent for resolving similar high-stakes disputes in the future.

As urban infrastructure remains a priority in India, the SC’s decision will be pivotal in shaping the operational and financial frameworks governing key projects, ensuring accountability and efficient resource allocation. The judgment is expected to have far-reaching implications for public transport systems and legal governance in PPP ventures.

The Supreme Court is set to hear a contempt petition filed by the Delhi Metro Rail Corporation (DMRC) against Reliance Infrastructure-led Delhi Airport Metro Express Private Limited (DAMEPL). The case revolves around a disputed arbitration award of Rs 2,800 crore that DMRC owes DAMEPL, with allegations that Reliance Infra has not adhered to previous court directives on the matter. The dispute traces back to the termination of the Delhi Airport Metro Express Line contract in 2012, which Reliance Infra claims was due to structural defects in the line, holding DMRC responsible. An arbitration tribunal awarded Rs 4,600 crore to DAMEPL in 2017. Subsequently, DMRC made partial payments but remains in arrears of Rs 2,800 crore, a situation that has escalated to a contempt plea. DMRC, in its filing, has sought relief from the apex court to address Reliance Infra's alleged non-compliance. The legal proceedings are critical, as DMRC faces significant financial constraints, and the payment obligation could impact its operations and urban transportation projects. The case highlights broader concerns about public-private partnerships (PPPs) in infrastructure, particularly regarding the clarity of contractual obligations and mechanisms for dispute resolution. Reliance Infra argues that DMRC’s financial obligations should not be deferred further, emphasizing the need for timely restitution to sustain investor confidence in India's infrastructure sector. The matter has garnered widespread attention, as the outcome could set a precedent for resolving similar high-stakes disputes in the future. As urban infrastructure remains a priority in India, the SC’s decision will be pivotal in shaping the operational and financial frameworks governing key projects, ensuring accountability and efficient resource allocation. The judgment is expected to have far-reaching implications for public transport systems and legal governance in PPP ventures.

Next Story
Real Estate

Dharavi Rising

Dharavi, Asia’s largest informal settlement, stands on the cusp of a historic transformation. With an ambitious urban renewal project finally taking shape, millions of residents are looking ahead with hope. But delivering a project of this scale brings immense challenges – from land acquisition to rehabilitate ineligible residents outside Dharavi and rehabilitation to infrastructure development. It also requires balancing commercial goals with deep-rooted social impact. At the helm is SVR Srinivas, IAS, CEO & Officer on Special Duty, Dharavi Redevelopment Project (DRP), Government..

Next Story
Real Estate

MLDL Records 20.4% Growth in Pre-Sales

Mahindra Lifespace Developers Limited (MLDL), the real estate and infrastructure development arm of the Mahindra Group, announced its financial results for the quarter ended March 31, 2025. In line with INDAS 115, the company recognises revenues using the completion of contract method. Key highlights FY25: Consolidated sales (Residential and IC&IC) of Rs 32.99 billion. Gross development value (GDV) additions in FY25 were Rs 1.81 trillion compared to Rs 440 billion in FY24 (~4x growth). Residential pre-sales of Rs 28.04 billion in FY25, reflecting 20.4% growth o..

Next Story
Infrastructure Transport

UCSL Delivers India's First Green Cargo Vessel to Norway

In a landmark achievement for Indian shipbuilding and the Atma Nirbhar Bharat initiative, Udupi Cochin Shipyard Limited (UCSL), a subsidiary of Cochin Shipyard Limited (CSL), has delivered the first of six next-generation green cargo vessels to Norway-based Wilson Ship Management AS, Europe’s largest short-sea shipping operator. The 3,800 DWT vessel, named Wilson Eco 1, was handed over during a ceremony at New Mangalore Port. The delivery is part of a Rs 5.06 billion project supported by Norway’s green maritime funding programme, marking India's entry into the European eco-friendly ca..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?