Reliance being arrogant, can't sit on govt head for payment of arbitration award: SG Tushar Mehta to Delhi High Court

Solicitor General Tushar Mehta told the Delhi High Court on Wednesday that Anil Ambani-owned Reliance Infrastructure was being arrogant in seeking a ₹7,000 crore arbitration award in its favor [Delhi Airport Metro Express Private Limited v Delhi Metro Rail Corporation]..The submission was made by Mehta before Justice Suresh Kumar Kait during the hearing of an execution petition filed by Reliance Infrastructure’s subsidiary, the Delhi Airport Metro Express Private Limited (DAMEPL) against the Delhi Metro Rail Corporation (DMRC) for enforcement of a Supreme Court order upholding the arbitration award of more than ₹7,000 crore in its favor..Appearing for the DMRC, Mehta told the court that an amount of ₹1,000 crore has been deposited in an escrow account. He added that the matter relates to the Delhi Metro, which does not have the money and therefore the government was willing to sit with the banks so that Reliance's debt and liabilities will be taken over by it..Advocate Prateek Seksaria, appearing for DAMEPL, submitted that his client had spoken with the lenders who have rejected this proposal..Mehta submitted that if this was the case, then an affidavit should be filed stating the same. Seksaria however refused and said that this was an execution petition and he was not bound to file any affidavit in this regard.The Solicitor-General then said, “You can't sit on our head… Sometimes our client may have an arrogant approach but they should be discreet in that arrogance and it should not be shared with the court... Let him file an affidavit and show his arrogance.”.The single-Judge responded to Mehta’s submission and remarked that it should not be put like that as it will give the petitioners the chance to make a similar argument.This was not the first instance of Mehta making strong remarks against Reliance Infrastructure. Even during the last hearing, Mehta had said that Reliance, which has several deals with the government, was arm-twisting it for the payment of the arbitration award. Mehta had said that if this continues, the government will take a new policy call. .Meanwhile, Seksaria told the Court that the reason he was against the government dealing with the banks was because if the money comes into an escrow account, he can deal with the banks to resurrect his business and a bunch of his accounts that might be declared non-performing assets, will be saved.“There is grave prejudice. If I pay my money to banks before December 31 several my accounts will not be declared NPA. This money will help resurrect my business,” he said.Seksaria said that the DMRC and the government have enough funds in its account and they can easily pay the money.“They are acting as if this money is not physically available with them because they have to spend it for Phase III and Phase IV. This is not the correct position in law… There is nearly ₹1,642 crore with them which should immediately come into the escrow account,” he said..The Court meanwhile said that if the DAMEPL does not want the government to deal with the banks, then there is no option. The Court has now directed the the DMRC to furnish its bank account details so that it can take stock of the money available with them.The case has now been listed for further hearing on January 11, 2022..Reliance Infrastructure arm-twisting government: SG Tushar Mehta tells Delhi High Court