After taking over the operations of the metro, HUDA will have the right to decide whether to engage IL&FS in managing the rapid rail project or not, according to an IL&FS official.
The country’s first fully privately financed rapid metro project was built by IL&FS, which is now facing bankruptcy proceedings in the NCLAT, and had commenced operations on its first phase in November 2013 and second phase in March 2017.
Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL) are the two special purpose vehicles (SPVs) running the metro services since 2013 and 2017, respectively.
“Due to various breaches in contract by HUDA, the two SPVs had served termination notices to HUDA on June 7, giving a 90 days’ notice as per the concession agreement,” an IL&FS spokesperson said.
Pursuant to direction of the NCLAT order on August 8, RMGSL and RMGL being ‘red entities’ were required to seek prior approval from Justice (retd) D K Jain, former SC judge mandated to oversee the IL&FS resolution process – before selling, transferring, encumbering, alienating, dealing with or creating any third party right, title or interest on any movable or immovable assets.
In compliance with the order, RMGSL and RMGL had filed for an order seeking Justice Jain’s approval for handing over the Metro Link to HUDA, the spokesperson said.
“Justice D K Jain, after hearing all parties concerned involved – including authorities and lenders – today (Friday) allowed RMGL to hand over the Metro Link project on or before September 9 to HUDA, upholding the termination notice served by the company on June 7,” he said.
The judge in the order has also said that HUDA shall be free to engage the services of RMGL at mutually discussed charges to run Metro Link till such time appropriate/alternate arrangements are made to run the same.
After September 9, it will be incumbent on HUDA to ensure the operations of metro run unhindered once the project is handed over by IL&FS SPVs, the spokesperson added.
The Rapid Metro is a fully-elevated rapid transit system with stations at Cyber City, DLF Phase 2,DLF Phase 3, NH-8 and Golf Course Road up to Sector 55-56, among others and provides connectivity to the Delhi Metro from Sikanderpur Station.