New Delhi: Lack of a consensus between the Centre and Delhi government is jeopardising the payment of award money to the DAMEPL.
The meeting of the Central government, Delhi government, and the DMRC held on November 10, to discuss the payment of the arbitral award to DAMEPL, remained inconclusive with no consensus emerging between the two key stakeholders (Centre and Delhi government) on the modalities to raise funds for the payment of Rs 5,000 crore to the DAMEPL, against the Supreme Court decree.
The meeting presided over by Union Urban Affairs Secretary Manoj Joshi was also attended by Delhi Chief Secretary Naresh Kumar, DMRC Managing Director Vikas Kumar, Director, Finance, Ajit Sharma, and representatives of the various banks, including the SBI, the HDFC, the Union Bank, the ICICI Bank, the Canara Bank, and the Indian Bank.
Representatives of the banks were in dark about the purpose of their presence in the meeting as the DMRC itself had said in the court that it does not have the ability to raise funds though bank loans as it would fall into a debt trap. The DMRC has also maintained this position in the affidavit filed by it in the Delhi High Court.
On the DMRC’s proposal to the Union Urban Affairs Ministry and Delhi government, the 50:50 JV partners of the DMRC, to contribute Rs 2,500 crore each by both the partners as an equity contribution, the Union Secretary said that the Centre will contribute Rs 2,500 crore, subject to the approval from Ministry of Finance, but Delhi government should also pay the same amount as its contribution.
On this proposal, the Delhi Chief Secretary said that the Delhi government has no budget provision to pay Rs 2,500 crore to the DMRC, as an equity contribution.
Post that, Joshi presented a second option under which the DMRC would raise Rs 5,000 crore loans from banks, backed by the sovereign guarantee from the Delhi government as well as Centre in the proportion of their equity stake in the company, and thus both would have to furnish a guarantee for Rs 2,500 crore each.
On this second proposal, Delhi Chief Secretary said that he had no instructions from the Delhi government to discuss this aspect and also expressed the inability of the Delhi government to furnish a guarantee for Rs 2,500 crore.
In the end, the meeting ended without any solution for the payment of Rs 5,000 crores arbitral award to DAMEPL.
The Supreme Court, in September 2021, had upheld the arbitral award in favour of DAMEPL and it has been over a year now but the DAMEPL is still waiting for the satisfaction of the award.
In January this year also, the SC, while hearing a plea filed by DAMEPL, had said that the High Court should dispose of the DAMEPL’s award execution plea without any further delay, as consequences of the pendency are detrimental to the interest of the DAMEPL as well as DMRC.
The delay in the payment of the arbitral award to the DAMEPL is putting an additional interest liability of Rs 1.24 crore per day on the DMRC. A delay of more than a year has already cost the DMRC an additional interest liability of Rs 500 crore.
In the last six months, the DMRC has failed to honour the three orders of Delhi HC that directed it to make a payment to the DAMEPL.
(IANS)
