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The Delhi High Court today directed the Delhi Metro Rail Corporation (DMRC) to submit by Thursday its balance sheet for the year 2021, along with details of its bank accounts and fixed upon its submission that it does not have enough funds to pay the Rs. 7,000 crore arbitration award in favour of Anil Ambani-owned Reliance Infra's Delhi Airport Metro Express Private Limited.

Sr. Adv. Parag Tripathi argued on behalf of DMRC that they have nearly Rs. 6,000 crore in their various accounts, however, the same is meant for Metro projects in Delhi, Patna and Maharashtra.

Tripathi also disputed DAMEPL’s claim of Rs. 7,000 crore dues and submitted that they only owe a little more than Rs. 3,000 crore.

Sr. Adv. Rakesh Kumar Khanna for DAMEPL on the other hand, submitted that DMRC is owned by the Central government and it cannot be accepted that the government does not have the money to pay the arbitration award cannot be accepted.

He further said that DMRC has huge assets including equity share capital of around ₹19,500 crores and, therefore, the money can be easily paid.

The Court will now hear the matter on February 17.

Eatlier, the Delhi Metro Rail Corporation (DMRC) has informed the Delhi High Court in an affidavit that as per the Court's prior directions it has deposited Rs 1,000 crore in an escrow account against an arbitral award of Rs. 7,000 cr in favour of Reliance Infrastructure-owned Delhi Airport Metro Express Pvt Ltd (DAMEPL). The Court has directed the Corporation to state the funds available with it in its accounts outside Delhi within a week.

Meanwhile, DMRC informed Court on affidavit that total funds worth Rs 5800.93 crore were available with them, as on 17 December.

In the hearing today before the bench of Justice Suresh Kumar Kait, DAMEPL told Court that there can be no selective treatment given with respect to payment of the decree amount merely because the judgment debtor was the Government.

It further declined the Government's offer to deal with DAMEPL's financial creditors directly, stating that the banks were not ready for the same, but want money to go directly to DAMEPL rather than being deposited in Banks in discharge of their dues.

DAMEPL added that the company itself was bankrupt and not in a position to let go of the funds.

Solicitor General Tushar Mehta's insistence for an affidavit to this effect was declined by DAMEPL's counsel stating that it cannot give any affidavit merely because the Solicitor wants it to.

Mehta appeared for DMRC in the matter.

Earlier, agreeing to deposit Rs.1,000 cr in an escrow account the DMRC had told the Delhi High Court that DAMEPL is arm-twisting the government regarding compliance with the award.

DMRC had proposed that it would deal directly with DAMEPL's creditor banks to settle its debts, and that Rs. 1,000 crore would be deposited in an escrow account in the next 48 hours, with the decision on payment of the remaining amount to be taken at a later stage.

However, Senior Advocate Rajiv Nayar appearing for DAMEPL rejected these proposals on which Solicitor General Tushar Mehta appearing for DMRC had told Court that the company shares several projects with the government and that this 'attitude is not proper'. He warned the company of a new policy call, if this 'attitude' were to continue.

Mehta remarked that Anil Ambani-owned Reliance Infrastructure is "arm-twisting the government with regard to the payment of nearly ₹ 7,000 crore as ordered by an arbitral tribunal in the company's favour," in the hearing of an execution petition by DAMEPL against DMRC for enforcement of a Supreme Court order upholding the award.

“I am suggesting a way forward considering your Lordship is dealing with a public project. I already have several dealings with the banks and since I am working for the people, I may be in a better position to deal with the banks. DMRC also has a financial crunch and therefore if they take this loan to pay the arbitration award the public will suffer,” Mehta said.

Nayar however, argued that the government cannot say that it is bankrupt and the money should come to court.

“The government cannot raise its hand and say we don’t have money. I want this amount to come to Court first. They (DMRC) are sitting on a reserve of ₹10,000 crore. Can the government say they are bankrupt?” Nayar asked.

Further, the amount due is also disputed - with DAMEPL claiming ₹7,100 cr and DMRC stating that it owes only around ₹5,000 crore.

The Court has recorded Mehta’s submission that ₹ 1,000 crore will be deposited in an escrow account and listed the case for further hearing on December 22.

Cause Title: Delhi Airport Metro Express Private Limited vs Delhi Metro Rail Corporation