Reliance Infrastructure Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
RELINFRA · price
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Reliance Infrastructure disclosed a Bombay High Court order dated June 10, 2025 in a commercial arbitration case between MMRDA and Mumbai Metro One Pvt Ltd (MMOPL), where RInfra holds a stake. MMOPL had won an arbitration award of around Rs. 411.70 crore for cost overruns on the Versova-Andheri-Ghatkopar metro project, with project costs rising from Rs. 2,356 crore to Rs. 4,321 crore. MMRDA challenged the award under Section 34 and sought an unconditional stay without depositing any amount. The Court rejected this and ruled that if MMRDA deposits the entire awarded amount (with interest computed till May 31, 2025) by July 15, 2025, execution of the award will remain stayed. The Court observed the award is in the nature of a money decree and MMRDA cannot get a free stay, indicating the award is unlikely to be easily overturned.
Positive for Reliance Infrastructure as a shareholder of MMOPL, since the Court has shown strong deference to the arbitral award in MMOPL's favour. If MMRDA fails to deposit the full amount by July 15, 2025, MMOPL can execute the award and recover the dues, which could flow through to RInfra as a stakeholder. The Section 34 challenge is still pending final hearing, so the matter is not fully closed, but the interim order tilts in MMOPL's favour.