New Delhi, Mar 26 (IANS): In a major relief to IL&FS, the Supreme Court on Friday directed Haryana Shehari Vikas Pradhikaran (HSVP) to deposit 80 per cent of total "debt due" of over Rs 2,400 crore, within three months into the escrow account.
The amount to be deposited by Haryana Shehari Vikas Pradhikaran (HSVP) adds up to Rs 1,925 crore.
The top court said that appropriation of any amount from the escrow account shall be subject to further orders of the NCLAT or any other competent legal authority.
Both parties - IL&FS SPVs and HSVP - have the liberty to refer any disputes relating to other rights, as well as those arising from the Audit Report commissioned by CAG for determining the debt due, to arbitration.
IL&FS had bagged the two-phased Gurgaon Metro Project - that were developed through its subsidiary SPVs - Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL) - in 2009 and 2013.
Due to multiple unmet obligations by the authority --HSVP -- under the concession agreement, IL&FS SPVs had terminated the concession agreements in September 2019 and demanded certain termination payments due to them under the concession agreement.
HSVP however refuted the contention of IL&FS SPVs and challenged the matter in High Court of Punjab and Haryana.
The High Court after hearing both the parties, ruled in September 2019 that operations and maintenance of the metro link be handed over to HSVP and it also directed CAG to carry out financial audit of total debt due.
Project was handed over to HSVP in October 2019, as per the court orders.
Auditors appointed by CAG submitted their report on debt due and determined the same at Rs 2,407 crore. The report was taken note by court on September 28, 2020.
IL&FS (SPVs) moved the Supreme Court in January 2021, as despite CAG submitting the audit report in compliance of the HC order, HSVP refused to meet its obligations and pay the compensation as ordered vide the HC order, while raising several objections to CAG audit reports and not complying with HC order
The top court's verdict comes as a major boost for the crisis-hit IL&FS which is undergoing resolution and adressing its debts.