NCLT rejects bankruptcy plea filed by SBI, IDBI against Mumbai Metro One: Reliance Infra

In a big relief for Reliance Infrastructure, NCLT has disposed off a bankruptcy plea filed by SBI and IDBI Bank against Mumbai Metro One Pvt Ltd (MMOPL). The development was disclosed by the company on April 15 in an exchange filing.

"In furtherance to our disclosure dated January 15, 2024, and pursuant to Regulation 30 of the Listing Regulations, we wish to inform you that the Section 7 petitions of SBI and IDBI Bank are disposed-off by NCLT Mumbai in view of OTS issued by all lenders, against Mumbai Metro One Private Limited (MMOPL), a joint venture of the Company with Mumbai Metropolitan Regional Development Authority (MMRDA) (where the Company holds 74% and MMRDA holds 26%)," it read.

In January this year, Indian Bank became the third lender to file an insolvency plea against MMOPL. The State Bank of India (SBI) and IDBI Bank had initiated bankruptcy proceedings against MMOPL past year to recover dues.

MMOPL had received loans from the above-mentioned lenders for the project. The consortium's total debt in MMOPL stood at Rs 1,711 crore.

Earlier this month, the Supreme Court overturned its prior ruling that compelled the Delhi Metro Rail Corporation (DMRC) to pay an arbitration award of around Rs 8,000 crore to Reliance Infra's subsidiary, Delhi Airport Metro Express Pvt Ltd (DAMEPL).

An application under Section 7 of IBC is initiated by a financial creditor either on their own or jointly with other financial creditors for initiation of Corporate Insolvency Resolution Process against a corporate debtor.