New Delhi : According to a filing with the stock exchange, the Anil Ambani group company, Reliance Infrastructure Ltd, has confirmed that the Calcutta High Court supported a Rs 780 crore arbitration decision in their favor against the Damodar Valley Corporation of West Bengal. Over ten years ago, Reliance Infrastructure secured a deal to establish a 1,200 MW thermal power station in Purulia, West Bengal for a cost of Rs 3,750 crore.
Disputes and other factors caused delays in the project, so DVC is now seeking compensation from Reliance Infrastructure. Reliance Infrastructure disputed this decision, but in 2019 an arbitration tribunal sided with the company and ordered DVC to pay Rs 896 crore to Reliance Infrastructure. DVC contested the arbitral tribunal's decision in the Calcutta High Court, but the court rejected the challenge.
In a filing, the firm stated that the Division Bench of the Hon'ble High Court of Calcutta issued a decision on September 27, 2024, in a petition filed by Damodar Valley Corporation (DVC) disputing the arbitration award under Section 34 on September 29, 2023, totaling around Rs 780 crore, which includes accumulated interest in favor of the company regarding the Raghunathpur Thermal Power Project. The company mentioned that the court upheld most of the arbitration award, except for some changes in interest rates, resulting in a total amount of around Rs 780 crore, including interest earned. Furthermore, the bank will also release the guarantee of Rs 600 crore. Reliance Infra is currently carrying out a thorough examination of the ruling and will decide whether to enforce the Award or challenge the judgment, based on legal advice.
FIRST Business Portal addressing the potential of business capability of North East Region.
