IL&FS on Sunday acquired Rs 1,925 crore from state-owned Haryana Shehari Vikas Pradhikaran (HSVP) as interim termination cost within the Gurgaon Metro Project case.
This decision of Rs 1,925 crore kinds a part of the Rs 61,000 crore whole restoration estimated by the brand new board, led by Uday Kotak, which represents decision of over 61 per cent of general debt of round Rs 99,000 crore (fund based mostly and non-fund based mostly) as of October 2018, IL&FS mentioned.
According to IL&FS, this cost, duly acquired in escrow accounts, is available in compliance of the Supreme Court’s order of March 26, 2021 that dominated in favour of IL&FS within the Gurgaon Metro Project — developed by way of ILFS subsidiaries and particular objective automobiles Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL).
Further, appropriation of any quantity from the escrow accounts might be topic to additional orders of the NCLAT or another competent authorized authority as per the order, which might be duly complied with by IL&FS. The Supreme Court had directed HSVP to deposit 80 per cent of whole “debt due” (over Rs 2,400 crore foundation audit performed by CAG), amounting to Rs 1,925 crore, inside 3 months into the escrow accounts of the 2 SPVs.
Andhra Bank is the lead financial institution within the RMGL together with PNB, Indian Overseas Bank, Indian Bank, Punjab & Sindh Bank, UCO Bank, Bank of India and Dena Bank (presently Bank of Baroda). Canara Bank is the lead financial institution in RMGSL together with Andhra Bank, Corporation Bank (presently Union Bank of India), Punjab & Sindh Bank, Central Bank of India and IIFC (UK) Ltd.
“This ruling will also set a precedence for other projects wherein infrastructure companies, including IL&FS, are seeking payment of their legitimate dues and enforceability of valid contracts and concession agreements with various State Governments,” mentioned an organization spokesperson.
Either celebration, IL&FS SPVs and HSVP, have the freedom to refer any disputes referring to different rights underneath the concession settlement, in addition to these arising from the audit report commissioned by CAG for figuring out the debt due, to Arbitration, as per the Supreme Court ruling.
IL&FS had bagged the two-phased Gurgaon Metro Project developed by way of RMGL and RMGSL in 2009 and 2013. Due to a number of unmet obligations by the HSVP, RMGL and RMGSL had terminated the concession agreements in September 2019 and demanded termination funds as per the concession settlement underneath authority occasion of default. HSVP had, nonetheless, refuted the competition of RMGL and RMGSL citing concessionaire occasion of default and challenged the matter in High Court of Punjab and Haryana, IL&FS mentioned.
