Anil Ambani’s side of the government is twisting, SG said in Delhi High Court – this is the second time, now we have to think
No one knows better than him how much money is needed for Anil Ambani, who is on the verge of being bankrupt. This is the reason why his company Reliance Infra is trying hard to get back its money from Delhi Metro (DMRC). The emphasis was so much that Solicitor General Tushar Mehta had to tell the Delhi High Court that Anil Ambani’s company is trying to get money by twisting the government’s arm.
Tushar Mehta said before the bench of Justice Suresh Kumar that this attitude of Anil Ambani is wrong. He is working in many projects with the government. But the way they are being treated to get the money back is incomprehensible. Mehta said that this is the second such incident. If this trend continues, then a new policy will have to be considered.
Mehta made this argument to Ambani’s subsidiary Delhi Airport Metro Express Pvt Ltd. (DAMEPL) on the appeal of Advocate Rajeev Nayyar, appearing for. Rajiv had opposed the government’s proposal that it would settle the debt by dealing directly with the banks which have lent to Ambani’s company. Nayyar also opposed Mehta’s proposal that Rs 1000 crore would be deposited in the escrow account in the next 48 hours. The rest of the amount will be considered later.
Nayyar said that he was aware of the condition of the banks. They work for the people. If DMRC takes loan from banks to repay the arbitration amount, then the public will have to suffer. Nayyar said that the government cannot say that it is a pauper. The money should come directly to the court. He said that DMRC has a reserve of ten thousand crores. They cannot say that the company is bankrupt.
There was also a heated argument between the two lawyers in the court regarding the amount of arbitration. Mehta said that the amount that Anil Ambani’s company has to get is close to 5 thousand crores. While Nayyar’s claim was that the amount is Rs 7100 crore. However, later the court ordered to take on record the argument of Mehta in which Rs 1000 crore was asked to be deposited in the escrow account. The hearing will take place on December 22.
Good news for debt-ridden Anil Ambani came when the Supreme Court on September 9 asked the Delhi Metro Railway Corporation to pay its claims to Anil Ambani’s Reliance Infrastructure. Interest should also be given to the company. The Supreme Court upheld the arbitration court’s decision in 2017 in favor of DAMEPL in this matter. The Delhi government has 50 per cent stake in DMRC. While the Center has a 50 per cent stake.
According to the case, in 2008, DAMEPL had entered into an agreement with Delhi Metro Rail Corporation to run the city rail project till 2038. In 2012, Ambani’s company stopped operating the capital’s airport metro project due to controversies. The company had sought termination fee by initiating an arbitration case against DMRC alleging breach of agreement.
