Shares of Reliance Infra tanked sharply on Wednesday going down 20% to hit an intraday low of ₹227.60.
What Happened: The massive crash today comes as the Supreme Court overturned the arbitral award in favour of Anil Ambani-owned Reliance Infrastructure’s metro subsidiary, Delhi Airport Metro Express Private Limited (DAMEPL).
Chief Justice of India DY Chandrachud stated, “The amounts deposited by the Delhi Metro Rail Corporation shall be refunded. Any amount paid by petitioner as part of coercive action has to be refunded.”
The Supreme Court permitted the DMRC’s curative petition, with the bench cautioning against its indiscriminate use, stating, “However, the curative jurisdiction cannot opt to open floodgates. In the specific facts and circumstances of the case. Interference of Supreme Court had led to grave miscarriage of justice.”
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The legal dispute between DMRC and DAMEPL dates back to their 2008 agreement to operate the Airport Metro Express Line. Despite DMRC constructing civil structures and DAMEPL handling system works, operational issues arose, leading to DAMEPL’s suspension of operations in July 2012 and subsequent termination of the agreement in October 2012.
The arbitration tribunal initially ruled in favour of DAMEPL in 2017, directing DMRC to pay ₹2,782.33 crore.
Price Action: Reliance Infra’s share price was locked in a 20% lower circuit at ₹227.60 on Wednesday.
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