Reliance Infra arm gets notice over alleged DSRA defaults

30 Dec 2024 , 01:39 PM

Reliance Infrastructure Ltd (Reliance Infra) announced on Friday that its wholly owned subsidiary, PS Toll Road Private Limited (PSTR), has received letters from Axis Bank and IDFC First Bank on December 26, 2024. The notices are for PSTR’s toll project on Maharashtra’s NH-44 from Pune to Satara.

The ‘right of substitution’ enables banks to take over the project if specific circumstances, such as payment defaults, are met.

According to Reliance Infra, Axis Bank and IDFC First Bank have reported difficulties with the DSRA, which is an account designed to safeguard the company’s ability to satisfy its financial obligations. If PSTR is unable to keep this account, the banks may step in to safeguard their interests, potentially resulting in a change in project management or control.

Reliance Infra said its unit will seek legal counsel and take reasonable steps to protect its interests in the case.

“The financial impact on the company cannot be determined at this stage, if any, and will depend on the final outcome,” according to the business.

At around 9.32 AM, Reliance Infra was trading 1.66% lower at ₹294, against the previous close of ₹298.95 on NSE. The counter touched an intraday high and low of ₹299.85, and ₹292.80, respectively.

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