The Mumbai Metropolitan Region Development Authority (MMRDA) has deposited ₹560.21 crore with the Bombay High Court in connection with an ongoing arbitration dispute involving Mumbai Metro One Private Ltd (MMOPL), a joint venture with Reliance Infrastructure.
The payment follows a Supreme Court directive issued after MMRDA challenged a Bombay High Court order from June 2025. That order had required MMRDA to deposit the entire arbitration award of ₹1,169 crore with the court by July 15, 2025. The apex court, however, allowed MMRDA to deposit only 50% of the awarded amount while the case proceeds.
The legal dispute dates back to August 2023, when MMOPL was awarded ₹992 crore by a 3-member arbitration panel. The arbitration addressed cost-related disputes between MMRDA and MMOPL regarding Mumbai’s first metro line, which connects Versova, Andheri, and Ghatkopar.
Originally estimated at ₹2,356 crore, the metro project cost eventually rose to ₹4,321 crore. MMRDA contested the arbitration ruling under Section 34 of the Arbitration and Conciliation Act, but the high court ruled in favour of MMOPL.
In response to the financial strain, MMOPL had previously indicated that the awarded sum would be used to reduce its debt. The project had been financed by a bank consortium led by Canara Bank, which in late 2024 considered selling ₹1,226 crore in loans. NARCL had placed an anchor bid of ₹1,063 crore for these loans.
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Reliance Infra holds a 74% stake in MMOPL, while MMRDA owns 26%. MMOPL, formed in 2007 under a public-private partnership, has faced multiple financial challenges. In 2023, SBI and IDBI Bank initiated insolvency proceedings over unpaid dues totalling ₹549 crore. The NCLT later dismissed these petitions in April 2024 following a one-time settlement agreement.
As of 9:18 AM on July 30, 2025, Reliance Infrastructure share price was trading at ₹336.90, a 0.98% decrease.
With ₹560.21 crore now deposited, the legal and financial battle over Mumbai’s first metro line continues. Further court proceedings will determine the final outcome in the high-stakes infrastructure dispute.
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Published on: Jul 30, 2025, 9:27 AM IST
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