RInfra case: Government moves towards eliminating the possibility of confiscation of Delhi Metro’s property.

After a strict warning from the judiciary, the central government is now preparing to amend the Metro Railway Act. The move is aimed at averting the possibility of court attachment of Delhi Metro Rail Corporation’s (DMRC) assets in a long-running legal battle with a subsidiary of Anil Ambani’s Reliance Infra (RInfra).

The Ministry of Housing and Urban Development has released a draft Bill to amend Section 89 of the Act, which proposes to completely remove the sub-section under which courts can confiscate properties of the Metro Corporation.

The Delhi High Court had issued an order on March 17 to ensure payment as per the award of the arbitration, which is due for the last 5 years. The Court had also said that the Court reserves the right to issue further and appropriate directions to the Ministry and the Delhi Government in case the DMRC fails to pay all dues.

In the amendment note, the ministry has said that a need is felt to change the law in view of the Delhi High Court order, which has a clause on confiscation of property of Delhi Metro. It states that there should be no possibility that the Delhi Metro may come to a halt, bringing the national capital to a standstill and creating a law and order risk.

The ministry said, ‘The central government is the custodian of public properties and it cannot allow such an uncomfortable situation to arise.’

DMRC has a stake of about Rs 4,700 crore in Delhi Airport Metro Express Pvt Ltd (DAMEPL). The court asked him to ensure payment to the company as per the award of the tribunal or face confiscation of assets in case of default.

In an affidavit filed in the court earlier this month, Union minister Hardeep Puri had said, “The central government is being asked to attach DMRC’s properties to the company which will construct the airport metro line in the first few years of the 30-year contract.” Left the services and went away.