According to reports, the Supreme Court on Thursday upheld an arbitration award of over Rs 4,660 crore in favor of a subsidiary owned by entrepreneur Anil Ambani’s Reliance Infrastructure.
It is in a significant victory for Anil Ambani, that his company has won a 4-year battle for control of funds from an arbitration award, which it intends to use to repay its lenders. A two-judge Supreme Court panel upheld the 2017 arbitration award in favor of Ambani’s Metro Rail service, which would have fetched it over Rs 4,500 crore including interest, though the original arbitral award was over Rs 2,800 crore, which DMRC was payable by The matter pertains to the 2008 agreement between Reliance and DMRC for the Delhi Airport Express on BOT basis, which was terminated by Reliance in 2012, with DMRC leaders going to arbitration.
In 2017, the arbitral tribunal ordered the damages to be paid by DMRC to the Reliance Infrastructure arm. The award was upheld by the Delhi High Court in 2018, but was quashed by a division bench of the High Court in 2019, leading Reliance Infra to move the Supreme Court. Anil is already fighting an individual bankruptcy case while his telecom companies are in bankruptcy. During the hearing, his lawyers had said that Reliance would use the money to pay off the lenders. This prompted the Supreme Court to restrain the banks from making the company’s accounts as NPAs. The final decision also removes the court’s restriction on lenders.