SC Stays High Court's ₹1,169 Crore Deposit Order in MMRDA-Reliance Metro Dispute

The Supreme Court has stayed a Bombay High Court order that directed the Mumbai Metropolitan Region Development Authority (MMRDA) to deposit ₹1,169 crore, as per news reports. This amount was awarded to Mumbai Metro One Pvt Ltd (MMOPL), a Reliance Infrastructure-led firm, following a 2023 arbitration.

The top court clarified that the High Court’s directive would remain on hold if MMRDA deposits 50% of the award. MMOPL has been asked to respond to the appeal filed by MMRDA, which challenged the High Court’s refusal to grant an unconditional stay on the payment.

Tribunal Awarded ₹992 Crore Plus Interest

In 2023, a 3-member arbitral tribunal awarded ₹992 crore, along with interest, to MMOPL. The award was later corrected in 2024. MMOPL is a joint venture between Reliance Infrastructure (74%) and MMRDA (26%). The company operates Mumbai’s Versova-Andheri-Ghatkopar metro line.

MMRDA argued that the arbitral award was beyond the scope of the agreement, lacked a legal basis, and ignored key evidence. Solicitor General Tushar Mehta, appearing for the authority, called the deposit condition too harsh at this stage of proceedings.

SC Says HC Can Proceed With Hearing

The Supreme Court noted that the High Court is free to continue hearing MMRDA’s petition under the Arbitration and Conciliation Act, 1996. The interim relief granted by the SC will be subject to the final order passed by the High Court.

Background of the Project

The Maharashtra government awarded the Metro One project to Reliance Infrastructure and Veolia Transport (now Transdev) in 2006. Several disputes followed over delays, costs, design, and maintenance. The project faced a delay of more than 2 years.

MMOPL claimed that project costs rose from ₹2,356 crore to ₹4,321 crore, a point contested by MMRDA. These cost escalations led the company to invoke the arbitration clause under the concession agreement.

Read More: Reliance Infra Board Approves ₹6,000 Crore Equity Fundraise Alongside ₹3,000 Crore NCDs!

Conclusion

The Supreme Court’s order provides temporary relief to MMRDA, while the final outcome now rests with the Bombay High Court’s ongoing proceedings.

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