Reliance Infrastructure Another good news has come for. The Calcutta High Court has upheld the verdict in favor of Reliance Infrastructure Ltd in its Rs 780 crore arbitration dispute 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 had won the 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, due to which DVC had sought damages from Reliance Infrastructure.
Reliance Infrastructure challenged
However, Reliance Infrastructure challenged this 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 was rejected by the court. The division bench of the Calcutta High Court on September 27, 2024 delivered its verdict in the petition filed by Damodar Valley Corporation under Section 34 challenging the arbitration award of September 29, 2023, the company said in a filing to the stock exchange. Regarding the plant. An amount of approximately Rs 780 crore is involved in this including interest.
arbitration award upheld
The company said the court upheld the arbitration award except for pre-allotment interest relief and reduction in interest on bank guarantee amounting to Rs 181 crore, totaling Rs 780 crore including accrued interest. Apart from this, bank guarantee of Rs 600 crore will also be issued. Reliance Infra said it is currently conducting a detailed review of the decision and “depending on legal advice, will either proceed to implement the decision or challenge the decision by September 27, 2024.”
Image Credit: India-Tv.