Attorney General tells government to pay Reliance Infrastructure dues for IGI Metro line

NEW DELHI: Putting an end to the ambiguity over the payment of termination amount to the subsidiary of Reliance Infrastructure in Delhi Airport Metro project, the attorney general (AG) has advised the government to release it “immediately“ to avoid paying high interest in the future.

If government goes by AG Mukul Rohatgi's advice, Delhi Airport Metro Express Private Limited (DAMEPL) would get 80% of the total debt that could range between Rs 1,500 crore and Rs 1,800 crore, sources said. DAMEPL had exited from the project invoking termination clause on June 30, 2013 and it was taken over by Delhi Metro Rail Corporation (DMRC).

Though there was debate on whether the company walking out amounted to the termi nation of contract under the concession agreement (CA), the AG has given legal opinion that the termination was triggered the day DAMEPL exited from the project. He has said that the legality of the termination is no more in dispute. DMRC has not been acknowledging DAMEPL exit as termination.

As per the agreement between DMRC and DAMEPL, the minimum termination amount payable is 80% of the loan that the operator had taken even when the termination is on account of the operator's fault. There has been a dispute on what is the exact loan that the operator had taken. TOI has learnt that the AG has clearly mentioned that the agreement has specified what is the loan or debt amount and equity. He has advised that DMRC can get the debt amount verified by a statutory auditor in case it needs further clarity and that the payment can be made immediately.

Now the urban development ministry will forward the legal opinion to DMRC. Though the second UPA government had referred the case to a group of ministers, it had to be deferred at the last minute as Election Commission had announced poll dates.