Reliance Infrastructure Wins Rs. 16.14 Crore Arbitration Award Against NHAI
Deepthi | Myequity news | Date : 13-11-2018 16:00:00 IST
Reliance Infrastructure has won Rs. 16.14 crore arbitration award against National Highway Authority of India (NHAI). A three-member Arbitration Tribunal in its unanimous award on November 12, 2018 has asked NHAI to pay Rs. 16.14 crore by February 10, 2019 to Reliance Infrastructure. NHAI will have to pay interest @12% p.a. on the amount if they do not pay Rs. 16.14crore by the deadline.
This win is in addition to the Rs. 200 crore arbitration award that the three-member Arbitration Tribunal in its unanimous decision had ordered NHAI to pay to Reliance Infrastructure for the same project in August this year for cost over-run and loss of revenue.
The need for current arbitration arose due to cost over-run in Consultant fees during construction, delayed payment of grant and additional expenses due to Change in Law on TO Toll Road Private Limited (TO Toll Road), a wholly owned subsidiary of Reliance Infrastructure, which NHAI did not reimburse as per the terms of the Concession Agreement.
The contention of TO Toll Road that the project suffered cost over-run in Consultant fees during construction, delayed payment of grant and additional expenses due to Change in Law was upheld by the Tribunal.
With this win, Reiiance Infrastructure has won a total of six Arbitration Awards amounting to - Rs. 6,300 crore in. cases of OMRC, Goa Power Plant and NHAI Roads. In addition, Reliance Infrastructure has over Rs. 8,000 crore of claims under advanced stages of arbitration for EPC projects, Mumbai Metro and Roads.
TD Toll Road has designed, built and are operating 87 km long 4-lane National Highway (NH45) road connecting Trichy and Dlndigul in Tamil Nadu. The project construction works have been completed and the commercial operation for the project commenced in January 2012. The proceedings of the Tribunal were held for one and half years starting April 2017, and all pleadings and arguments by both the parties were completed in 39 sittings.
About Reliance Infrastructure Limited:
Reliance Infrastructure Ltd is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as Power, Roads and Metro Rail in the Infrastructure space and the Defence sector.