Reliance Infrastructure arm-twisting government: SG Tushar Mehta tells Delhi High Court

Solicitor General Tushar Mehta told the Delhi High Court on Monday that Anil Ambani-owned Reliance Infrastructure was 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 (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, Delhi Airport Metro Express Private Limited (DAMEPL), against Delhi Metro Rail Corporation (DMRC) for enforcement of a Supreme Court order upholding the arbitration award of more than ₹7,000 crore in its favour..Appearing for DMRC, SG Mehta told the Court that this was the second instance where such attitude was being shown by the company which has several projects with the government. If this continues, a new policy call will be taken, he told the Court.“This attitude may not be proper. You have several relations with the government. Don’t arm-twist...This has happened twice with me so a new policy call will be taken,” Mehta remarked..The remarks came in response to the submission made by counsel for DAMEPL, Senior Advocate Rajiv Nayar, who refused the government’s proposal that it will deal directly with the banks to which DAMEPL owes money and settle the debt. Nayar also protested against Mehta’s submission that ₹1,000 crore will be deposited in an escrow account in the next 48 hours and the decision on payment of the remaining amount can be taken at a later stage.“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 submitted..The two lawyers also disagreed on the amount that the DMRC owes to Reliance. While the arbitration award was for over ₹7,000 crore and Nayar estimated the amount at around ₹7,100 crore, Mehta said that the calculation was erroneous and it owes only around ₹5,000 crore..The Court, meanwhile, 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.