Mumbai: MMRDA Deposits ₹560.2 Crore With Bombay HC Registry In Metro-1 Arbitration Dispute With MMOPL

Mumbai: MMRDA Deposits ₹560.2 Crore With Bombay HC Registry In Metro-1 Arbitration Dispute With MMOPL

MMOPL, a joint venture between Reliance Infrastructure and MMRDA, was awarded Rs 992 crore by a three-member arbitral tribunal in August 2023. The award was granted as compensation for cost escalations and contractual disputes concerning the Metro-1 project. With interest accrued till May 2025, the total amount payable rose to Rs 1,169 crore.

Prathamesh KharadeUpdated: Wednesday, July 30, 2025, 12:07 PM IST
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Mumbai: MMRDA Deposits ₹560.2 Crore With Bombay HC Registry In Metro-1 Arbitration Dispute With MMOPL |

Mumbai: In a key development in the ongoing arbitration dispute between Mumbai Metro One Pvt Ltd (MMOPL) and the Mumbai Metropolitan Region Development Authority (MMRDA), the latter has deposited Rs 560.2 crore with the registry of the Bombay High Court. The deposit, made in compliance with a recent Supreme Court directive, marks a critical step in a legal battle over compensation related to the Versova-Andheri-Ghatkopar Metro-1 corridor.

MMOPL, a joint venture between Reliance Infrastructure and MMRDA, was awarded Rs 992 crore by a three-member arbitral tribunal in August 2023. The award was granted as compensation for cost escalations and contractual disputes concerning the Metro-1 project. With interest accrued till May 2025, the total amount payable rose to Rs 1,169 crore.

Bombay HC Directs MMRDA To Deposit Amount

On July 10, 2025, the Bombay High Court directed MMRDA to deposit the full award amount, rejecting its request for an unconditional stay. The court ruled that MMOPL’s arbitration victory could not be rendered ineffective merely because MMRDA was contesting the award. It noted that MMRDA failed to establish a strong enough case to justify a stay without deposit.

Importantly, the court observed that MMRDA, despite being a 26 per cent equity holder in MMOPL, was actively involved in key decisions throughout the Metro-1 project. It also pointed out that MMRDA’s nominee chaired MMOPL’s audit committee, which approved financial statements that were partly relied upon by the tribunal in its decision.

While MMRDA has challenged the arbitral award under Section 34 of the Arbitration and Conciliation Act, calling it illegal and flawed, MMOPL has accused the authority of trying to retract previously agreed-upon commitments. The High Court concluded that the award, passed by a 2:1 majority, was not arbitrary or perverse.

Following the HC’s ruling, MMRDA approached the Supreme Court, which granted partial relief by allowing the authority to deposit only 50 per cent of the award amount pending final adjudication. In a stock exchange filing, Reliance Infrastructure confirmed the deposit of Rs 560.2 crore with the High Court registry, according to a Times of India report.

The final outcome of this high-stakes dispute could have far-reaching implications for public-private partnership (PPP) infrastructure projects in India, particularly in defining accountability and financial obligations between government bodies and private entities.

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