Reliance Infrastructure shares tank 20%; hit lower circuit limit

Shares of Reliance Infrastructure on Wednesday tanked 20 per cent as in a major relief to the DMRC, the Supreme Court set aside its own judgement and held that the PSU firm was not obliged to pay over Rs 8,000 crore to the Delhi Airport Metro Express Private Ltd, a subsidiary of the firm, in pursuance of a 2017 arbitral award.

The stock dived 19.99 per cent to settle at Rs 227.40 -- its lower circuit limit -- on the BSE. On the NSE, it slumped 20 per cent to hit the lowest trading permissible limit for the day of Rs 227.60. The company's market valuation eroded by Rs 2,250.02 crore to Rs 9,008.02 crore.

Allowing the curative plea of the Delhi Metro Rail Corporation (DMRC) against the 2021 judgement, a special bench headed by Chief Justice D Y Chandrachud held that the top court erred in setting aside the Delhi High Court verdict. A division bench of the Delhi High Court, in 2019, had set aside the arbitral award passed against the DMRC.

"By setting aside the Delhi High Court judgement, this court (SC) restored a patently illegal award which saddled a public utility with an exorbitant liability," said the bench which also comprised justices B R Gavai and Surya Kant.

The verdict said the amounts deposited by the DMRC till date shall be refunded and restored the parties to their position in which they were on the date of pronouncement of the Delhi High Court verdict.

Anil Ambani's Reliance Infrastructure Ltd said no liability has been imposed on it by the Supreme Court order that set aside a Rs 8,000-crore arbitral award that was granted in favour of Delhi Airport Metro Express Pvt Ltd (DAMEPL).

"Reliance Infrastructure wishes to clarify that the Order dated April 10, 2024, passed by the Supreme Court does not impose any liability on the company and the company has not received any money from DMRC / DAMEPL under the arbitral award," the firm said in a stock exchange filing. While DAMEPL is a subsidiary of Reliance Infrastructure, it is a separate entity and the liability falls on it.