Reliance Infrastructure shares hit lower circuit as SC sets aside Rs 8,000-crore arbitration award to subsidiary

Shares of Reliance Infrastructure Ltd hit a lower circuit of 20% in morning deals today amid reports that the Supreme Court set aside the arbitral award in favour of Anil Ambani-owned Reliance Infrastructure's metro arm Delhi Airport Metro Express Private Limited (DAMEPL). The court ordered for the refund of all amount paid by DMRC and stated that the court made an error of judgement in interfering with the division bench order, causing grave miscarriage of justice. It also accepted a curative petition filed by DMRC that had challenged an earlier arbitral award directing it to pay Rs 8,000 crore to Delhi Airport Metro Express Private Limited (DAMEPL), a subsidiary of Reliance Infrastructure.

Meanwhile, Reliance Infrastructure said the SC order did not impose any liability on the company and the company has not received any money from DMRC / DAMEPL under the arbitral award.

"We inform you that the Hon’ble Supreme Court today has allowed the Curative Petition filed by Delhi Metro Rail Corporation (DMRC) against Delhi Airport Metro Express Private Limited (DAMEPL). Reliance Infrastructure wishes to clarify that the Order dated April 10, 2024 passed by the Hon’ble Supreme Court does not impose any liability on the Company and the Company has not received any money from DMRC / DAMEPL under the arbitral award," said Reliance Infrastructure in a communication  to bourses. 

Reliance Infrastructure shares fell 20% to Rs 227.40 against the previous close of Rs 284.20 on BSE. Market cap of the firm fell to Rs 9,008 crore. A total of 7.46 lakh shares of the firm changed hands, amounting to a turnover of Rs 18.34 crore on BSE.

In 2017, Delhi Airport Metro Express won the arbitration award against Delhi Metro Rail. Delhi Airport Metro had said that running trains on the airport line wasn't viable due to structural defects in the viaduct made by Delhi Metro Rail.  

In September 2021, the top court upheld the arbitral award. In November 2021, the Supreme  Court dismissed a review plea filed by Delhi Metro in the case. In August 2022, Delhi Metro filed a curative petition in the Supreme Court against the arbitral award.