IL&FS on Friday said that the Supreme Court had ruled in its favour in the Gurgaon Metro Project case.
As part of the judgment, the Supreme Court directed the Haryana Shehari Vikas Pradhikaran (HSVP) to deposit 80% of total ‘debt due’ (more than ₹2,400 crore), amounting to ₹1,925 crore, within three months, into the escrow account.
IL&FS had bagged the two-phased Gurgaon Metro Project developed through its subsidiary SPVs — Rapid Metro Rail Gurgaon Ltd. (RMGL) and Rapid Metro Rail Gurgaon South Ltd. (RMGSL) — in 2009 and 2013 respectively.
“Due to multiple unmet obligations by the authority [HSVP], IL&FS SPVs had terminated the concession agreements in September 2019 and demanded certain termination payments due to them under the agreement,” IL&FS said.
HSVP, however refuted the contention of IL&FS SPVs and challenged the matter in High Court of Punjab and Haryana.
“The High Court, after hearing both the parties, ruled in September 2019 that operations and maintenance of the metro link be handed over to HSVP, and directed the CAG to carry out financial audit of total debt due,” IL&FS said.
“HSVP was told to pay 80% of debt due [as determined by CAG] in the escrow account within 30 days of submission of CAG report,” the infrastructure and lending firm said.
The project was handed over to HSVP in October 2019 as per court orders.
Auditors appointed by CAG submitted their report on the debt due and determined the same at ₹2,407 crore. Despite the CAG submitting the audit report, HSVP had refused to meet its obligations and pay the compensation as ordered by the HC. IL&FS SPVs then moved the SC in January 2021.