MMRDA deposits Rs 560 crore with Bombay high court registry in arbitration dispute with Mumbai Metro One Pvt Ltd
MMOPL, a joint venture between Reliance Infrastructure and MMRDA, is a special purpose vehicle set up to run the Versova-Andheri-Ghatkopar Metro 1 corridor.
In Aug 2023, a three-member arbitral tribunal awarded Rs 992 crore to MMOPL as compensation for cost escalations and contractual disagreements. With interest accrued till May 2025, the total award rose to Rs 1,169 crore.
You Can Also Check:
Mumbai AQI
|
Weather in Mumbai
|
Bank Holidays in Mumbai
|
Public Holidays in Mumbai
On July 10, 2025, HC directed MMRDA to deposit the entire amount, rejecting its plea for an unconditional stay.
The court observed that MMOPL's arbitration win could not be rendered meaningless during the pendency of MMRDA's challenge to the award. It noted that MMRDA failed to make a prima facie case to justify a stay without deposit.
HC also pointed out that MMRDA, as a 26% equity holder in MMOPL, was involved in key financial decisions and project execution. The audit committee of MMOPL, chaired by an MMRDA nominee, endorsed the financial statements on which the tribunal partly relied.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
New Container Houses In Bolon
Container House | Search ads
Search Now
It concluded that the award — passed by a 2:1 majority — could not be dismissed as perverse or arbitrary. MMRDA filed a challenge under Section 34 of the Arbitration and Conciliation Act, calling the award illegal and based on flawed assumptions regarding project delays, rent recovery, and cost escalations.
MMOPL, in turn, accused the authority of attempting to backtrack from previously approved decisions.
After the HC ruling, MMRDA approached Supreme Court, which granted partial relief by allowing it to deposit only 50% of the award amount pending final adjudication. In a stock exchange filing, Reliance Infrastructure confirmed that MMRDA complied with the SC order and deposited Rs 560.2 crore with the HC registry.
The final outcome of this arbitration matter is likely to set a precedent for public-private partnership infrastructure disputes in India.
S
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
9 minutes ago
- Economic Times
24 homes, 6 plots, 40 acres farmland, 1kg gold: Karnataka ex-babu with Rs 15,000 salary caught having Rs 30 crore assets
A former clerk at Karnataka Rural Infrastructure Development Limited (KRIDL) is under investigation after a Lokayukta raid revealed assets worth approximately Rs 30 crore, far exceeding his known income. The investigation was triggered by complaints of a Rs 72 crore misappropriation scheme involving fake projects and forged documents, implicating other officials and a cement supplier. Tired of too many ads? Remove Ads Massive assets uncovered in raid Fake projects and forged documents alleged Tired of too many ads? Remove Ads Political response and ongoing inquiry A former clerk who worked at Karnataka Rural Infrastructure Development Limited (KRIDL) for over 20 years has allegedly amassed assets several times over his known sources of income according to a TOI report. Kalakappa Nidagundi , a former outsourced clerk at the KRIDL in Koppal , is under investigation for allegedly accumulating assets worth approximately Rs 30 crore over two decades despite earning a monthly salary of Rs 15, case came to light on Thursday following a raid by Lokayukta officials at Nidagundi's residence in Pragati Nagar . The raid was initiated in connection with the suspected misappropriation of Rs 72 crore in the operation, authorities discovered 24 houses, six plots, over 40 acres of agricultural land, more than 1 kg of gold jewellery , and several vehicles. Documents retrieved also suggested the presence of additional illegal assets. Some of the properties were found to be registered under the names of Nidagundi's wife and raid began at 6 a.m., following complaints filed by KRIDL executive engineers Anil Patil (Koppal office) and Anand Karlakunti (Nelogipura subdivision) against Nidagundi and former executive engineer Zaranappa M Chincholikar. The complaints were lodged at the direction of KRIDL Managing Director Basavaraju According to officials, the accused parties allegedly created forged documents and invoices for 96 projects between 2019 and 2025, covering sewerage, road, and drinking water works across various villages. The fraudulent projects include 19 in Kanakagiri, five in Gangavathi, four in Yelburga, and 68 in Koppal taluk , collectively diverting government grants worth Rs 72 was dismissed from service a few months prior to the raid. Chincholikar, though previously terminated, continues in service due to a court MLA K Raghavendra Hitnal confirmed Nidagundi's involvement along with cement supplier Amaresh Yambaladinni in collusion with Chincholikar. He stated that the government would conduct a thorough investigation into all related works and ensure appropriate action is taken against those found guilty.(With inputs from TOI)
Time of India
9 minutes ago
- Time of India
Swiggy trades below listing price after net loss doubles in Q1
Synopsis Swiggy's share price has dipped below its listing price following a report of nearly doubled losses in the April-June quarter. The food and grocery delivery platform's net loss widened to Rs 1,197 crore, despite a 54% revenue increase. Instamart's losses contributed significantly, with a negative margin, indicating rapid expansion outpacing demand.
Deccan Herald
9 minutes ago
- Deccan Herald
Trump, tariffs, and trouble: India's textile exports to US may face severe hit due to 25% tariff
Indian exports of textiles and apparels to the US - valued at Rs 9,34,14,79,85,000 crore and accounting for 29% of India's total exports of textiles and apparels - is at a risk of losing its competitive edge.
