Reliance Infra Bags Rs 16.14 Cr Arbitration Award Against NHAI | CORPORATE ETHOS

Reliance Infra Bags Rs 16.14 Cr Arbitration Award Against NHAI

By: | November 13, 2018
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Nov 13: Mumbai-based Reliance Infrastructure on Tuesday said that it has won Rs 16.14 crore arbitration award
against National Highway Authority of India ( ). A three-member Arbitration Tribunal in its unanimous award on November 12, 2018 has asked NHAI to pay Rs 16.14 crore by February 10, 2019 to Reliance Infrastructure. NHAI will have to pay interest @12% p.a. on the amount if they do not pay Rs 16.14 crore by the deadline.
According to the company, this win is in addition to the Rs 200 crore arbitration award that the three-member Arbitration Tribunal in its unanimous decision had ordered NHAI to pay to Reliance Infrastructure for the same project in August this year for cost over-run and loss of revenue.
The need for current arbitration arose due to cost over-run in Consultant fees during construction, delayed payment of grant and additional expenses due to Change in Law on TD Toll Road Pvt
Ltd (TD Toll Road), a wholly owned subsidiary of Reliance Infrastructure, which NHAI did not reimburse as per the terms of the Concession Agreement.
The contention of TD Toll Road that the project suffered cost over-run in Consultant fees during construction, delayed payment of grant and additional expenses due to Change in Law was upheld by the Tribunal.
With this win, Reliance Infrastructure has won a total of six Arbitration Awards amounting to – Rs 6,300 crore in. cases of OMRC, Goa Power Plant and NHAI Roads. In addition, Reliance Infrastructure has over Rs 8,000 crore of claims under advanced stages of arbitration for EPC projects, Mumbai Metro and Roads.