In a major breakthrough for Anil Ambani-led Reliance Infrastructure, the Bombay High Court has ruled that the Mumbai Metropolitan Region Development Authority (MMRDA) must release ₹1,169 crore to Mumbai Metro One Pvt Ltd (MMOPL), a subsidiary of Reliance Infra, by July 15. The payout stems from a previous arbitration ruling that awarded MMOPL ₹992 crore in 2023, now revised to include interest.
MMOPL, which operates Mumbai’s first metro line connecting Versova, Andheri and Ghatkopar, recently marked 11 years of successful service. The company, weighed down by debt, has confirmed that the funds will be directed toward clearing its financial liabilities.
This court verdict comes after a prolonged dispute over cost escalations, where the original project budget of ₹2,356 crore eventually ballooned to ₹4,321 crore. The arbitration was initiated after MMRDA contested the cost claims under the Arbitration and Conciliation Act. The high court, however, upheld MMOPL’s position.
Following the announcement, Reliance Infrastructure’s stock rallied by 3.5 percent, hitting ₹404.40 on the market. The decision has significantly uplifted investor sentiment and is being seen as a turning point for the financially embattled group.
The metro project, commissioned in 2007, was awarded to Reliance Infra through a public-private partnership model, where the company owns a 74 percent stake while MMRDA holds 26 percent. A consortium of banks led by Canara Bank—including Indian Bank, SBI, Bank of Maharashtra, IDBI, and IIFCL (UK)—provided the financial backing.
In 2024, MMOPL and MMRDA agreed to a one-time debt resolution of ₹1,700 crore, with both parties contributing to the settlement. This move helped stave off insolvency proceedings initiated by SBI and IDBI Bank over unpaid dues. The National Company Law Tribunal (NCLT) later dismissed the petitions as both parties reached a resolution.
The Maharashtra government had earlier proposed acquiring Reliance Infra’s 74 percent stake for ₹4,000 crore through MMRDA, but the plan was later halted due to funding constraints.
This ruling not only offers immediate relief to Reliance Infra but also highlights the importance of legal clarity in large-scale urban infrastructure projects.
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