This payment, duly received in escrow accounts, comes in compliance with the Hon'ble Supreme Court’s Order of March 26, 2021, that ruled in favour of IL&FS in the Gurgaon Metro Project - developed through ILFS subsidiaries and Special Purpose Vehicles (SPVs) - Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL).
Further, appropriation of any amount from the escrow accounts shall be subject to further orders of the NCLAT or any other competent legal authority as per the said Order, which would be duly complied with by IL&FS.
The Hon’ble Supreme Court in its Order had directed HSVP to deposit 80% of total "debt due" (of over Rs2,400cr basis audit conducted by CAG), amounting to Rs1,925cr, within 3-months into the Escrow Accounts of the two SPVs, the company said in the filing.
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 IIFC (UK) Ltd.
“The Supreme Court ruling on March 26, 2021, followed by HSVP's compliance with the order and transfer of the payable amount to the IL&FS Group entities, will go a long way in protecting the interest of stakeholders/Lenders in the Indian infrastructure sector. This ruling will also set a precedence for other projects wherein Infrastructure companies, including IL&FS, are seeking payment of their legitimate dues and enforceability of valid contracts and concession agreements with various State Governments” said the company spokesperson.
In the regulatory filing, this resolution of Rs1,925cr forms part of the Rs61,000cr total recovery estimated by the New Board which represents resolution of over 61% of overall debt of approx. Rs99,000cr (fund based and non-fund based) as of October 2018. 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.