Haryana government pays IL&FS Rs 1,925 crore metro project dues – Times of India
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MUMBAI: IL&FS has recovered Rs 1,925 crore from Haryana Shehari Vikas Pradhikaran (HSVP), the state’s urban planning agency, as interim termination payment in the Gurgaon Metro Project case. This payment follows the Supreme Court’s March 26, 2021 order that ruled in favour of IL&FS in the metro case.
IL&FS’s subsidiaries Rapid Metro Rail Gurgaon (RMGL) and Rapid Metro Rail Gurgaon South (RMGSL) had developed the projects. The Supreme Court order bodes well for IL&FS in its recovery attempt from state governments that have been holding payments after the group went bankrupt. For instance, IL&FS has around Rs 500-crore claims on the government of Jharkhand as annuity on the road projects.
The SC order said that the money must be deposited in an escrow account and appropriation would be subject to further orders of the NCLAT or any other competent legal authority.
The benefit of the payment will flow to the lenders to the project. Andhra Bank (now a part of Union Bank) was the lead bank in RMGL, along with Punjab National Bank, Indian Overseas Bank, Indian Bank, Punjab & Sind Bank, UCO Bank, Bank of India and Dena Bank (now a part of Bank of Baroda). Canara Bank is the lead bank in RMGSL, along with Andhra Bank and Corporation Bank (now part of Union Bank of India), Punjab & Sind Bank, Central Bank of India and IIFC (UK).
“This ruling will set a precedence for other projects wherein infrastructure companies, including IL&FS, are seeking payment of their legitimate duescontracts with various state governments,” the company spokesperson said. The Rs 1,925-crore recovery forms part of the Rs 61,000-crore recovery estimated by the Uday Kotak-led board of IL&FS.
IL&FS’s subsidiaries Rapid Metro Rail Gurgaon (RMGL) and Rapid Metro Rail Gurgaon South (RMGSL) had developed the projects. The Supreme Court order bodes well for IL&FS in its recovery attempt from state governments that have been holding payments after the group went bankrupt. For instance, IL&FS has around Rs 500-crore claims on the government of Jharkhand as annuity on the road projects.
The SC order said that the money must be deposited in an escrow account and appropriation would be subject to further orders of the NCLAT or any other competent legal authority.
The benefit of the payment will flow to the lenders to the project. Andhra Bank (now a part of Union Bank) was the lead bank in RMGL, along with Punjab National Bank, Indian Overseas Bank, Indian Bank, Punjab & Sind Bank, UCO Bank, Bank of India and Dena Bank (now a part of Bank of Baroda). Canara Bank is the lead bank in RMGSL, along with Andhra Bank and Corporation Bank (now part of Union Bank of India), Punjab & Sind Bank, Central Bank of India and IIFC (UK).
“This ruling will set a precedence for other projects wherein infrastructure companies, including IL&FS, are seeking payment of their legitimate duescontracts with various state governments,” the company spokesperson said. The Rs 1,925-crore recovery forms part of the Rs 61,000-crore recovery estimated by the Uday Kotak-led board of IL&FS.
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