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The Supreme Court rules that Delhi Metro is not required to give Anil Ambani's company ₹8,000 crore.

Image credit: additional resources.

The Supreme Court declared that the Delhi Metro Express Private Ltd (DAMEPL), a division of Reliance Infrastructure, owned by Anil Ambani, didn't have the right to receive more than ₹8,000 crore from the DMRC.

The Supreme Court on Wednesday rejected its earlier decision, which had required the Delhi Metro Rail Corporation to give Anil Ambani's company a ₹8,000 crore tribunal award. This decision was a significant relief for the DMRC.

Chief Justice D Y Chandrachud led a special bench on Wednesday that found that the Supreme Court faulted in rejecting the Delhi High Court's decision.

The top court ruled that the DMRC was not required to give the Delhi Airport Metro Express Private Ltd. (DAMEPL), a division of Reliance Infrastructure, owned by Anil Ambani, more than ₹8,000 crore.

The supreme court ordered the suspension of the Delhi High Court's execution procedures after declaring that the arbitral award had resulted in a grave injustice.

The special bench further declared that the DMRC's deposits up to that point will be refunded and put the parties back in the same situation as when the Delhi High Court's decision was announced.

The 2008 "concession agreement" regarding the building, running, and upkeep of the Delhi Airport Metro Express Line served as the basis for the conflict between DMRC and RInfra's subsidiary.

The Delhi Airport Metro Express Private Ltd (DAMEPL), owned by Anil Ambani, terminated the contract in 2012, claiming the DMRC had failed to address the structural flaws it had found.

DAMEPL successfully contested the agreement's termination in 2017 and was awarded ₹2,950 crore plus interest in an arbitral tribunal.

The arbitrala sum plus interest increased to ₹8,009.38 crore till February 14, 2022, as a result of the case continuing for years. Of this, the DMRC has paid ₹1,678.42 crore, while the remaining amount owing is ₹6,330.96 crore.

Reliance Infrastructure's shares fell sharply and were trapped in a 20% downward circuit today at ₹227.60 a share.