The Bombay High Court has asked the Mumbai Metropolitan Region Development Authority (MMRDA) to deposit ₹1,169 crore with the court registry. The amount relates to an arbitral award granted to Mumbai Metro One Pvt Ltd (MMOPL), a subsidiary of Reliance Infrastructure Ltd.
MMOPL, a joint venture between Reliance Infrastructure (74%) and MMRDA (26%), operates Mumbai’s first metro line connecting Versova, Andheri, and Ghatkopar. The project, initiated under a 2007 agreement, faced delays and cost overruns. As per a news report, MMOPL claimed that project costs rose from ₹2,356 crore to ₹4,321 crore. MMRDA contested the revised figures, leading to arbitration.
A 3-member arbitral tribunal passed 2 orders, in August 2023 and February 2024, in favour of MMOPL. MMRDA challenged these awards in the Bombay High Court and requested a stay on their execution.
Justice Somasekhar Sundaresan refused to grant any interim relief without the deposit being made. He stated that an arbitral award, once given, could not be treated as irrelevant. The court added that allowing stays without deposits would undermine the purpose of the arbitration process.
The court clarified that no case had been made for an unconditional stay. However, if MMRDA deposits the entire ₹1,169 crore by July 15, 2025, the execution of the award would be paused until the court hears and decides on MMRDA’s challenge.
The metro project was Mumbai’s first under a public-private partnership. It began operations in June 2014 after delays of over 2 years. MMOPL has completed 11 years of metro operations as of 2025.
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The High Court’s order requires MMRDA to deposit the full award amount before any further relief is considered. The matter will continue pending a final decision on the agency’s petition against the arbitral ruling.
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Published on: Jun 11, 2025, 9:54 AM IST
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