Reliance Infra stock: On April 10, shares of Reliance Infrastructure plummeted by 20 percent, reaching a lower circuit limit at Rs 227.4. This drop came following a Supreme Court directive instructing its airport metro arm to refund arbitral award payments received from the Delhi Metro Rail Corporation (DMRC).
The Supreme Court approved DMRC’s curative petition, reversing its previous judgment that held the public transporter accountable for approximately Rs 8,000 crore payment to Delhi Airport Metro Express Pvt Ltd (DAMEPL). -Reliance Infra stock
Chaired by Chief Justice of India DY Chandrachud, with Justices BR Gavai and Surya Kant, the panel directed the Reliance Infra unit to repay the funds deposited by DMRC.
The origins of the case lie in DMRC’s failure to remit termination fees to DAMEPL, a firm under the ownership of Anil Ambani’s Reliance Infrastructure. DMRC terminated a contract to operate the airport metro line in the national capital, yet it persisted in utilizing the project’s assets and revenues since July 2013.
An arbitration panel ruled in favor of DAMEPL, directing DMRC to pay Rs 2782.33 crore along with interest. This decision was affirmed by both the Delhi High Court and subsequently by the Supreme Court.
As of February 14, 2022, DMRC had settled Rs 1,678.42 crore of the outstanding amount, with Rs 8009.38 crore remaining unpaid. By February 2023, the outstanding amount had decreased to Rs 6330.96 crore.
DMRC’s curative petition contested the Supreme Court order challenged in 2021.
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Up to this point in the year, the Reliance Infrastructure stock has seen an increase of 8 percent, compared to a 4 percent rise in the Nifty 50 index.
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