Reliance Infrastructure Triumphs in Rs 780 Crore Arbitration Against DVC

The Calcutta High Court has upheld a Rs 780 crore arbitration award in favour of Reliance Infrastructure against Damodar Valley Corporation. The dispute arose from a delayed 1,200 MW thermal power plant project in West Bengal. The court decision includes accrued interest and the release of a Rs 600 crore bank guarantee.

The Calcutta High Court has upheld a significant Rs 780 crore arbitration award in favor of Reliance Infrastructure Ltd in a long-standing dispute with Damodar Valley Corporation (DVC). The court's ruling supports the Anil Ambani group firm following a decade-long legal battle over a thermal power plant project in Purulia, West Bengal.

Reliance Infrastructure secured the Rs 3,750 crore contract over a decade ago but faced delays due to disputes and other issues. An arbitration tribunal's 2019 decision directed DVC to compensate Reliance Infrastructure with Rs 896 crore, sparking DVC's unsuccessful challenge in the Calcutta High Court.

The court's recent judgment, delivered on September 27, 2024, upheld the majority of the arbitration award, including accrued interest, amounting to Rs 780 crore. While some relief was granted on pre-award interest and the interest rate on a bank guarantee, Reliance Infra is reviewing the judgment for potential further legal actions.

(With inputs from agencies.)