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The Supreme Court has issued an interim order modifying a Bombay High Court directive that required the Mumbai Metropolitan Region Development Authority (MMRDA) to deposit the full INR 1,169 crore arbitral award in favor of Mumbai Metro One Private Limited (MMOPL), a joint venture involving Anil Ambani's Reliance Infrastructure. The apex court now mandates MMRDA to deposit 50 percent of the awarded amount, approximately INR 584.5 crore, for the stay on the High Court's full deposit order to remain active.
The Supreme Court has intervened in a significant financial dispute concerning the Mumbai Metro, issuing an interim order that modifies a previous directive from the Bombay High Court. The apex court has now stayed the Bombay High Court's order, which had mandated the Mumbai Metropolitan Region Development Authority (MMRDA) to deposit the entire INR 1,169 crore arbitral award in favor of Mumbai Metro One Private Limited (MMOPL). MMOPL is a joint venture between Anil Ambani's Reliance Infrastructure and MMRDA, operating Mumbai's first metro corridor, the Versova-Andheri-Ghatkopar line. Advertisement
The underlying dispute dates back to an arbitration award passed in 2023, and subsequently corrected in 2024, which granted MMOPL INR 992 crore plus interest. This award stemmed from a disagreement over the escalated cost of the metro line's development, which MMOPL claimed had risen significantly from its initial estimates. The Bombay High Court, in an order issued recently on July 10, had declined an unconditional stay on this award and had directed MMRDA to deposit the full awarded amount of INR 1,169 crore (including accrued interest) with its registry by July 15.
A Supreme Court bench led by Justice Manoj Mishra reviewed the matter. The apex court modified the High Court's directive, stating that MMRDA must now deposit 50 percent of the awarded amount, which is approximately INR 584.5 crore. Only upon this deposit will the High Court's earlier order to deposit the full amount remain. The bench has also asked MMOPL to respond to MMRDA's appeal, which challenges the Bombay High Court's recent ruling.
Solicitor General Tushar Mehta, representing MMRDA, argued before the Supreme Court that requiring the full award deposit at this stage would be excessively harsh on the state entity. This argument influenced the Supreme Court's decision to reduce the required deposit to half the amount.
The Supreme Court clarified that the ongoing High Court hearing, which is being conducted under the provisions of the Arbitration and Conciliation Act, 1996, can continue without impediment. Furthermore, the Supreme Court's interim order will stand modified accordingly if the High Court issues a final decision in the interim.
The Mumbai Metro One project has a history of disputes between its joint venture partners regarding project costs, commercial exploitation, and fare increases. Earlier this year, the Maharashtra cabinet had given in-principle approval to acquire MMRDA's stake in MMOPL, but later reversed the decision, further complicating the metro's financial outlook and ownership.
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