IL&FS said on Friday that the Supreme Court had ruled in its favor in the Gurgaon metro project case.
As part of the verdict, the Supreme Court directed Haryana Shehar Vikas Pradhan (HSVP) to deposit 80% of the total (over Rs 2,400 crore ‘, over Rs 2,400 crore’) of Rs 1,925 crore within three months. Amount, in escrow account.
IL&FS had developed its subsidiary SPVs – Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL) – a two-phased Gurgaon metro project in 2009 and 2013 respectively.
“Due to many unmet obligations by the authority [HSVP], IL&FS SPVs terminated the concession agreements in September 2019 and demanded some termination payments under the agreement, ”said IL&FS.
The HSVP, however, denied IL&FS SPV’s contention and challenged the case in the High Court of Punjab and Haryana.
IL&FS said, “The High Court ruled in September 2019, after hearing both sides, that the operation and maintenance of the metro link be handed over to HSVP, and directed the CAG to conduct a financial audit of the total debt.”
“HSVP was asked to pay 80% of the debt due [as determined by CAG] In escrow account within 30 days of submission of the CAG report, ”said the infrastructure and lending firm.
The project was handed over to HSVP in October 2019 as per court orders.
The auditors appointed by the CAG submitted their report on the dues and assessed ₹ 2,407 crore. Despite the CAG submitting the audit report, the HSVP had refused to fulfill its obligations and pay compensation as ordered by the HC. In January 2021, IL and FS SPVs went to SC.
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