The debt-laden Infrastructure Leasing and Financial Services (IL&FS) Group on Sunday said it has received an interim termination payment of Rs 1,925 crore from Haryana Shehari Vikas Pradhikaran (HSVP) in Gurgaon Metro project case.
The two-phased metro project was developed by ILFS subsidiaries and special purpose vehicles (SPVs) -- Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL).
The payment was received in escrow accounts in compliance with a Supreme Court order of March 26 this year that ruled in favour of IL&FS in the Gurgaon metro project case, a release from the company said.
The Supreme Court had directed HSVP to deposit 80 per cent of total "debt due" (of over Rs 2,400 crore basis audit conducted by CAG), amounting to Rs 1,925 crore, within 3 months into the escrow accounts of the two SPVs.
"Due to multiple unmet obligations by the HSVP, RMGL and RMGSL had terminated the concession agreements in September 2019 and demanded termination payments as per the concession agreement under authority event of default," the release said.
However, HSVP refuted the contention of RMGL and RMGSL citing concessionaire event of default and challenged the matter in High Court of Punjab and Haryana.
In September 2019, the High Court ordered that operation and maintenance of the Metro Link be handed over to HSVP, directed CAG to carry out financial audit of total debt due, and thereafter asked HSVP to pay 80 per cent of debt due, determined by CAG, in the escrow account within 30 days of submission of CAG report.
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The 80 per cent of debt due represents the minimum amount payable across either event - viz concessionaire event of default or authority event of default, it said.
HSVP consented to the High Court order and accordingly took over the Metro Link Project operations in October 2019 thereby resulting in no inconvenience to general public.
An audit of debt due was conducted by an independent firm of chartered accountants appointed by CAG. The auditors submitted their report on debt due which was determined to be Rs 2,407 crore.
As HSPV did not comply with the High Court order, refused to meet obligations and did not pay compensation, IL&FS SPVs moved the Supreme Court in January 2021.
The resolution of Rs 1,925 crore forms part of the Rs 61,000 crore total recovery estimated by the company's new board which represents resolution of over 61 per cent of overall debt of approximately Rs 99,000 crore (fund based and non-fund based) as of October 2018, the company said.
Appropriation of any amount from the escrow accounts shall be subject to further orders of the NCLAT or any other competent legal authority as per the Supreme Court order, it said.
While Andhra Bank is the lead bank in RMGL along with PNB, Indian Overseas Bank, Indian Bank, Punjab and Sindh Bank, UCO Bank, Bank of India and Dena Bank (presently Bank of Baroda), Canara Bank is the lead bank in RMGSL along with Andhra Bank, Corporation Bank (presently Union Bank of India), Punjab and Sindh Bank, Central Bank of India and IIFC (UK) Ltd.
The IL&FS Group consists of more than 300 group companies. In August 2019, IL&FS was sent to the bankruptcy courts by the government and was placed under special management led by banker Uday Kotak.
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