Why expand operations when you don’t have funds: Delhi HC to Delhi Metro

Anushka Khare Posted on: 2022-02-15 11:10:00 Viewer: 3,745 Comments: 0 Country: India City: New Delhi

Why expand operations when you don’t have funds: Delhi HC to Delhi Metro

New Delhi, India (Urban Transport News): On Monday, the Delhi High Court was hearing Delhi Airport Metro Express Pvt Ltd’s (DAMEPL) petition for execution of the 2017 arbitral award, which pertains to the Delhi Airport Metro Express Line and was upheld by the Supreme Court in September 2021.

The court asked the Delhi Metro Rail Corporation (DMRC) why it was expanding its operations when it does not have the money while seeking the financial details such as bank accounts, fixed deposits, and the annual balance sheet of 2021 of DMRC.

“The Judgement Debtor is directed to file the balance sheet of 2020-21 and the details of fixed deposits and bank accounts and the money lying therein as on date within three days from today,” said Justice Suresh Kumar Kait.

While the Reliance Infra-led company is praying that the DMRC be asked to forthwith deposit the entire amount of Rs 6,305.40 crore into the Project Escrow Account, the DMRC disputed the figure and submitted that it only owes Rs 3,305 crore after payment of Rs 1,000 crore last year.

Telling about the position of funds, DMRC said that it has only Rs 1,478.39 crore available in the banks under the ‘DMRC Funds’ head, Rs 2,668.81 crore under ‘Project Funds’ – earmarked for Phase III and IV – and Rs 1,561.30 crore under the ‘other than DMCR funds’ head, which has been provided to it by the Maharashtra and Bihar governments for construction of Metro Rail lines there.

According to Section 89 of The Metro Railways Act, 2002, only earnings of the metro railway administration can be attached by a court in execution of a decree or order. DMRC said that it is running into losses every month due to Covid-19 restrictions and that a majority of the money with it either belongs to other states or is earmarked for expansion in Delhi.

Aggrieved by DMRC's excuses, DAMEPL told that DMRC was hiding its actual financial position, while informing the court about the contents of the corporation’s publicly available balance sheet of 2019-20. “Rs 10,280 crore was available and it was in fixed deposit or flexi fixed deposits. The information being placed before the court perhaps is not correct,” said Rakesh Kumar Khanna, Senior Advocate representing DAMEPL before the court.





Also Read




Leave Your Comment!









Recent Comments!

No comments found...!