Anil Ambani is having a great time. Wherever he puts his hands, he is getting success. Now, he has got a big relief from the Kolkata High Court. The Kolkata High Court has upheld the decision in favour of Reliance Infrastructure Limited in an arbitration dispute of Rs 780 crore with West Bengal-based Damodar Valley Corporation (DVC). Anil Ambani’s group company gave this information to the stock market. Let us also tell you what the whole matter is.
More Than 10 Years Old Case
More than a decade ago, Reliance Infrastructure was awarded the contract to set up a 1,200 MW thermal power plant in Purulia, West Bengal, for Rs 3,750 crore. The project was delayed due to disputes and other reasons, and DVC sought damages from Reliance Infrastructure. However, Reliance Infrastructure challenged the contract, and in 2019, an arbitration tribunal ruled in favour of the company and directed DVC to pay Rs 896 crore to the company.
High Court Pronounced The Verdict
DVC challenged the arbitration tribunal’s order in the Kolkata High Court, which the court rejected. The company said in a notice to the stock market that the division bench of the Kolkata High Court pronounced its verdict on September 27, 2024, in the petition filed by Damodar Valley Corporation challenging the arbitration award of September 29, 2023, under Section 34, about the Raghunathpur Thermal Power Plant. This involves an amount of about Rs 780 crore, including interest.
What Did R Infra Say?
The company said that the court upheld the arbitration award except for the pre-allocation interest relief and reduction in interest on bank guarantee, which amounts to Rs 181 crore, for a total of Rs 780 crore, including accrued interest. Apart from this, a bank guarantee of Rs 600 crore will also be released. Reliance Infra said that the decision is currently being reviewed in detail. Based on legal advice, it will either proceed to implement the decision or challenge the September 27, 2024 decision.
Shares May Rise
Reliance Infra shares may rise on Monday with this relief given to Anil Ambani. According to the data, Reliance Infrastructure shares fell by 1.73 percent on Friday, and the company’s share came down to Rs 322.95. However, the company’s share came down to Rs 317.15 during the trading session. However, in the last month, R Infra shares have increased by more than 52 percent.
