IL&FS Group receives Rs 1925 cr from Haryana Govt in Gurgaon Metro Project Case

IL&FS Group receives Rs 1925 cr from Haryana Govt in Gurgaon Metro Project Case


IL&FS Group has received an amount of Rs 1925 cr from Haryana Shehari Vikas Pradhikaran (HSVP) as an interim termination payment in the Gurgaon Metro Project case, a company release said.

This payment has been received in escrow accounts and comes in compliance of Supreme Court’s order of March 26, 2021 that ruled in favour of IL&FS in the Gurgaon Metro Project case, it further said.

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Gurgaon Metro Project was developed through IL&FS subsidiaries and Special Purpose Vehicles (SPVs) – Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL).

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 1925 crore, within 3 months into the Escrow Accounts of the two SPVs.

Andhra Bank is the lead bank in the RMGL along with PNB, Indian Overseas Bank, Indian Bank, Punjab & Sindh Bank, UCO Bank, Bank of India and Dena Bank (presently Bank of Baroda).

Canara Bank is the lead bank in RMGSL along with Andhra Bank, Corporation Bank (presently Union Bank of India), Punjab & Sindh Bank, Central Bank of India and lIFC (UK) Ltd.

This resolution of Rs 1,925 crore forms part of the Rs 61,000 crore total recovery estimated by the New Board which represents resolution of over 61% of overall debt of approx. Rs 99,000 crore (fund based and non-fund based) as of October 2018, a media release said.

Either party – IL&FS SPVs and HSVP – have the liberty to refer any disputes relating to other rights under the Concession Agreement, as well as those arising from the Audit Report commissioned by CAG for determining the debt due, to Arbitration, as per the Supreme Court ruling, the release 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.


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