The Delhi High Court has directed National Highways Authority of India (NHAI) to pay INR 1204 crore to TK Toll Road Private Limited (TKTR), a wholly owned subsidiary of Reliance Infrastructure Limited (R-Infra). In a statement to the exchanges, R-Infra said the court directed NHAI to deposit the amount and allowed TKTR to withdraw the same against the Bank Guarantee.
“The amount will be utilized for debt reduction,” the company said.
R-Infra had got an arbitral award of INR 1200 crore in its favour in October 2022. TKTR had filed a petition in the Delhi HC for execution of this arbitration award. This toll road spreads over 82 kilometres (km) between Trichy and Karur in Tamil Nadu, facilitated by the 4-lane National Highway (NH 67).
According to a filing to the bourses by R-Infra, the Delhi High Court has directed NHAI to deposit the arbitral award amount with interest.
NHAI had awarded the development of Trichy and Karur highway to R-Infra in 2007 under a build operate and transfer (BOT) basis. The project was to complete in 2010, a deadline which was missed. Commercial operations of this road started in February 2014. The onus for delays and penalties had triggered the arbitration proceedings between NHAI and R-Infra.
