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Reliance Infra Share Price: The Supreme Court has given another blow to Anil Ambani's Reliance Infrastructure. The Supreme Court has ordered a subsidiary of Reliance Infrastructure to pay Rs. Compensation of Rs 8000 crore has been stopped. The result was that today the shares of Reliance Infra fell by 20 percent.
Shares of Reliance Infra were trading 19.99 per cent lower at Rs 227.40 on BSE.
Permission to set aside arbitration award
Supreme Court said, directing DMRC to make payment under the arbitration award is contempt of justice. The court has directed to make refund of all earlier payments mandatory. A bench headed by Chief Justice DY Chandrachud allowed DMRC's appeal to set aside the arbitration award.
Total liability of DMRCA is Rs. 8009.38 crore, out of which it transferred Rs. 8009.38 crore to Reliance Infra's subsidiary DAMEPL. Rs 1678.42 crore was paid. Anil Ambani-owned DAMEPL's contract to operate the 22.7 km long Airport Metro Express line has raised security concerns. DMRC canceled the contract in October, 2012.
What was the matter?
DMRC on 11 May 2017 Reliance Energy Ltd. (now Reliance Infrastructure) and Consortium of Constructions y Auxier de Ferracarriles SA vs. DMRC Arbitration Award.
It is noteworthy that DMRC failed to find faults in the structure of the Airport Metro Express Line. However, the tribunal's investigation found 1551 pits in 367 girders with 80 girders having holes in the range of 10 to 20 mm in the project. Which was giving evidence of fault in the structure. Since DMRC did not take any effective action in the matter within 90 days, the tribunal recommended DMRC to cancel the contract. Later the matter went to Delhi High Court. And his decision was challenged in the Supreme Court.
