Good days continue for Anil Ambani as the Kolkata High Court delivers a significant verdict upholding Reliance Infrastructure Ltd’s win in a Rs 780 crore arbitration dispute with Damodar Valley Corporation (DVC) of West Bengal. The Anil Ambani Group received a big relief as the court’s decision favored them, marking a positive turn of events for the company.
A decade ago, Reliance Infrastructure secured a contract to establish a 1,200 MW thermal power plant in Purulia, West Bengal, with an estimated cost of Rs 3,750 crore. However, the project encountered delays and disputes, leading DVC to seek compensation from Reliance Infrastructure. Following a ruling by the arbitration tribunal in 2019, DVC was instructed to pay Rs. 896 crore to the company.
DVC contested the tribunal’s decision in the Kolkata High Court, but their challenge was dismissed. On September 27, 2024, a division bench of the Calcutta High Court issued its final ruling on the matter, signaling the end of the arbitration saga. The court’s decision, which includes interest, amounts to about Rs. 780 crores.
Reliance Infrastructure responded to the court’s decision by confirming that the arbitration award was upheld, with minor exceptions related to interest relief and a reduction in bank guarantees. As a result, a bank guarantee of Rs. 600 crore will be provided, along with the adjusted amount of Rs. 780 crore. The company is currently reviewing the ruling and will decide whether to accept it or pursue further legal actions by September 27, 2024.
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