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The court’s directive follows a long-running arbitration dispute between MMOPL and MMRDA over prolong delay in project completion and subsequent cost overrun | Photo Credit: VIVEK BENDRE
The Bombay High Court has ordered the Mumbai Metropolitan Region Development Authority to pay ₹1,169 crore to Mumbai Metro One, a subsidiary of Reliance Infrastructure Ltd, as part of an arbitration award.
The Court instructed MMRDA to deposit the full amount with its registry by July 15.
Mumbai Metro One is a joint venture between Reliance Infrastructure (74 per cent) and the MMRDA (26 per cent). It operates Mumbai’s first metro corridor between Versova and Ghatkopar. The company will use the funds to reduce its outstanding debt.
The court’s directive follows a long-running arbitration dispute between MMOPL and MMRDA over prolong delay in project completion and subsequent cost overrun.
In August 2023, a three-member arbitral tribunal had awarded ₹992 crore to MMOPL in compensation for cost escalations and other contractual disputes related to the metro project. With interest, the total sum now stands at ₹1,169 crore.
MMRDA had contested the award and moved the HC against arbitral tribunal award. However, the Court declined to grant an unconditional stay on the arbitral award and ruled in favour of MMOPL.
The HC held that MMRDA had not made out a sufficient case to warrant an unconditional stay on the execution of the award.
As per data from MMRDA’s official website, the estimated cost of the project at inception was ₹2,356 crore, which later rose to ₹4,321 crore.
Published on June 10, 2025
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