Suspense Crime Sach Ka Dam
Another good news has come for Reliance Infrastructure. The Calcutta High Court has upheld the decision in favor of Reliance Infrastructure Limited in an arbitration dispute of Rs 780 crore with West Bengal-based Damodar Valley Corporation (DVC). Anil Ambani’s group company gave this information to the stock market. More than a decade ago, Reliance Infrastructure got a contract to set up a 1,200 MW thermal power plant in Purulia, West Bengal for Rs 3,750 crore. The project was delayed due to disputes and other reasons, which caused DVC to seek damages from Reliance Infrastructure.
Reliance Infrastructure challenged
However, Reliance Infrastructure challenged it and in 2019 an arbitration tribunal ruled in favor of the company and directed DVC to pay Rs 896 crore to the company. DVC challenged the arbitration tribunal’s order in the Calcutta High Court, which the court dismissed. The division bench of the Calcutta High Court pronounced its verdict on September 27, 2024, in a petition filed by Damodar Valley Corporation challenging the arbitration award dated September 29, 2023, under Section 34, about the Raghunathpur thermal power plant. This involves about Rs 780 crore including interest, the company said in a stock exchange notice.
Arbitration award upheld
The company said that the court upheld the arbitration award except for pre-allotment interest relief and reduction in interest on bank guarantee i.e. an amount of Rs 181 crore, which is a total of Rs 780 crore including accrued interest. In addition, a bank guarantee of Rs 600 crore will also be released. Reliance Infra said it is currently reviewing the decision in detail and “depending on legal advice will either proceed to implement the decision or challenge the decision dated September 27, 2024.
