On a day when its Special Purpose Vehicle, Delhi Airport Metro Express Private Limited (DAMEPL), exited from the Airport Metro operations, infrastructure major Reliance Infrastructure Limited (RInfra) stated that as per the terms of the Concession Agreement, the Delhi Metro Rail Corporation is now liable to pay DAMEPL a Termination Payment equal to 130 per cent of the Adjusted Equity and 100 per cent of the Debt Due for the project, as the termination has arisen owing to DMRC’s “event of default”.
The matter, RInfra said, has been referred to arbitration, in accordance with the dispute resolution mechanism specified in the Agreement. “As legally advised, DAMEPL’s claims for the Termination Payment are fully justified and enforceable, and RInfra is confident of recovering its entire investment in DAMEPL,” it added.
The company also said the Concession Agreement with the DMRC for the line had been terminated nearly nine months back vide a notice on October 8, 2012.
“The termination clause had to be invoked by DAMEPL, as the DMRC had persistently failed to cure the substantial defects in the civil structure designed and built by the DMRC, within the period prescribed under the Concession Agreement, and on account of Material Breach and Event of Default by the DMRC arising under the Agreement as a result thereof.”
Further, accusing the DMRC of not fulfilling its responsibilities, it said: “Despite the lapse of nine months and repeated requests by DAMEPL, the DMRC failed to make alternative arrangements for taking over the operations of the metro line, even after the termination of the Concession Agreement in October 2012. As a result, DAMEPL was compelled to serve a final notice on the DMRC once again to take over the operations with effect from July 1, 2013, as it was not possible for DAMEPL to continue the same indefinitely in the above situation. This takeover of operations has now been completed.”
