IL&FS gets Rs 1,925 crore from Haryana govt in Gurgaon Metro Project case
Debt-laden Infrastructure Leasing and Financial Services (IL&FS) said it has received Rs 1,925 crore from Haryana Shehari Vikas Pradhikaran (HSVP) as interim termination payment in the Gurgaon Metro Project case. The two-phased Gurgaon Metro Project was developed through IL&FS subsidiaries and special purpose vehicles (SPVs) – Rapid Metro Rail Gurgaon Ltd (RMGL) and Rapid Metro Rail Gurgaon South Ltd (RMGSL), a company release said.
This payment received in the escrow accounts, comes in compliance of the Supreme Court’s March 26, 2021 order that ruled in favour of IL&FS in the Gurgaon Metro Project, the release said.
The Supreme Court in its order had directed HSVP to deposit 80 per cent of total debt due (of over Rs 2,400 crore basis audit conducted by CAG), amounting to Rs 1,925 crore, within three months into the escrow accounts of the two SPVs, the release said.
Appropriation of any amount from the said escrow accounts shall be subject to further orders of the NCLAT or any other competent legal authority as per the order, the company said.
IL&FS had bagged the two-phased Gurgaon Metro Project developed through RMGL and RMGSL in 2009 and 2013.
Due to multiple unmet obligations by the HSVP, RMGL and RMGSL had terminated the concession agreements in September 2019 and demanded termination payments as per the concession agreement under authority event of default, the release said.
HSVP had, however, refuted the contention of RMGL and RMGSL citing concessionaire event of default and challenged the matter in the High Court of Punjab and Haryana, it said.
The High Court ruled in September 2019 that O&M (operations and maintenance) of the Metro Link be handed over to HSVP and directed CAG to carry out financial audit of total debt due, the company said.
The court also asked HSVP to pay 80 per cent of debt due determined by CAG in the escrow account within 30 days of submission of CAG report, it said.
HSVP had consented to the High Court order and accordingly took over the Metro Link project operations in October 2019 thereby resulting in no inconvenience to general public, it said.
Further, the audit of debt due was conducted by an independent firm of chartered accountants appointed by CAG and the scope of the audit was decided after considering inputs received from both IL&FS and HSVP, the release said.
The auditors submitted their report on debt due which was determined to be Rs 2,407 crore and was taken note by the High Court on September 28, 2020, it said.
IL&FS SPVs, thereafter, moved the Supreme Court in January 2021 after HSVP did not comply with the High Court order and refused to meet obligations and did not pay compensation despite CAG submitting the audit report, the company said.
This resolution of Rs 1,925 crore forms part of the Rs 61,000 crore total recovery estimated by the new board of IL&FS which represents the resolution of over 61 per cent of overall debt of around Rs 99,000 crore (fund based and non-fund based) as of October 2018, the release added.