Delay in award execution by DMRC results in loss of Rs 1.75 cr per day to taxpayers: DAMEPL
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The subsidiary of Reliance Infrastructure, in an application filed in the ongoing execution proceedings before the High Court, said that DMRC is trying to defeat the process by making limited disclosure of bank account details in respect of only Rs 1642.69 crore despite the order. It to disclose all your bank account details.
It claimed that DMRC had disclosed the total available funds of Rs 5800.93 crore in an affidavit filed in December.
The Decree Holder (DAMEPL) submits that the present application has become necessary in view of the conduct of the Decision Debtor (DMRC) to make only partial disclosure of his bank accounts.
“This judgment is an attempt on the part of the debtor to delay the process of execution of the decree in favor of the decree holder as well as somehow ensure that the hearing scheduled before this Hon’ble Court on 11.01.2022 is ineffective, filed by DAMEPL stated in the application.
An arbitral tribunal, in its May 2017 judgment, ruled in favor of DAMEPL, which withdrew from running the Airport Express Metro line over safety issues, and accepted its claim that the operation on the line was due to structural defects. The reason was not viable. The bridge through which the train will run.
On December 22, Justice Suresh Kait had directed the DMRC to file an affidavit furnishing the details of its bank accounts along with the balance amount.
The judge had observed that attachment of DMRC’s properties was not permitted under Section 89 of the Metro Railway (Operation and Maintenance) Act, 2002, but there was no such restriction in respect of its bank accounts.
DAMEPL submitted in the application, that the DMRC should comply with the order of the High Court in letter and spirit and furnish complete details of all its bank accounts and the total amount lying to the credit of such accounts along with the relevant bank statements.
As on 05.01.2021, the Judgment Debtor has given an affidavit disclosing only limited disclosure of bank account details in respect of Rs. 1642.69 crores. In a previous affidavit filed by the Judgment Debtor making a disclosure regarding ‘position of funds available with DMRC as on 17.12. Available funds were shown. Rupee. The application states that as on 17.12.2021 Rs 5800.93 crore.
The application said, “It is shocking that in spite of the orders passed by this Hon’ble Court, the Judgment Debtor has neither filed such affidavit within the stipulated time nor the direction in gross contempt and contempt of the order.” As per the details furnished.”
The delay in recovery of amounts due to the decree holder under the award is also causing the taxpayer to pay an interest amount of about Rs 1.75 crore per day, the application added as it was claimed that DAMEPL was “suffering from each day’s delay in receiving was the fruit of his decree”.
Last month, DAMEPL’s counsel had told the court, citing DMRC’s affidavit, that it had Rs 5,800 crore in bank accounts as of December 17, with earnings of over Rs 1,642 crore and more than Rs 2400 crore and Rs 1700 crore. It had project allocations. fund and deposit fund, respectively.
DMRC had said that since the corporation was facing financial crunch, public interest would be affected by the sudden taking of the liability and officials were working to find a solution.
It had earlier told the court that it would deposit Rs 1,000 crore in favor of DAMEPL in an escrow account and carry the debt of the Reliance Infrastructure subsidiary to the extent of the award money, suggesting that it would be a better time to negotiate. The situation will be with lender banks.
However, the proposal was turned down by DAMEPL and the court observed that if the decree holder does not want to accept the proposal, he cannot be compelled to do so.
The award was related to a concession agreement between the two entities, which was signed on August 25, 2008.
Under the agreement, DMRC was to carry out civil works, excluding the depot, and the balance, including project system works, was to be executed by DAMEPL, a joint venture of Rinfra and a Spanish construction company – Construción y Auxilier de Ferrocarrilles. – with a share of 95 and five percent respectively.
The Airport Express Line was commissioned on 23 February 2011, after an investment of over Rs 2,885 crore funded by DAMEPL Promoters Fund, banks and financial institutions.
In November, the Supreme Court had dismissed DMRC’s plea, seeking a review of its decision, which had upheld the 2017 arbitration award in favor of DAMEPL, which was applicable against it.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is generated automatically from a syndicated feed.)
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