New Delhi, Sep 6 (IANS) Justice D.K. Jain, appointed by NCLAT to oversee the IL&FS resolution process, on Friday approved the transfer of the Gurgaon Rapid MetroRail to Haryana Urban Development Authority (HUDA). It will now be incumbent on the Haryana government on what the way forward will be for the Rapid MetroRail.
The Haryana government could either choose to run the Rapid MetroRail itself or subcontract it to another party.
This is pursuant to the National Company Law Appellate Tribunal order of August 8 wherein - Rapid MetroRail Gurgaon Limited (RMGL) and Rapid MetroRail Gurgaon South Limited (RMGSL) - being red entities were required to seek prior approval from Justice (retd) Jain, former Supreme Court 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.
Justice Jain's order came after hearing all concerned parties involved, including authorities and lenders. He allowed RMGL to hand over the Metro Link project on or before September 9, 2019 to HUDA, upholding the termination notice served by the company on June 7, 2019.
Justice Jain, in the order, has also said that HUDA shall be free to engage the services of RMGL at mutually discussed charges to run the Metro Link till such time appropriate/alternate arrangements are made to run the same.
RMGSL and RMGL are the two special purpose vehicles (SPVs) running the Gurgaon Rapid MetroRail Project since 2013 and 2017, respectively.
Due to various breaches in contract by HUDA, the two SPVs served termination notices to HUDA on June 7, 2019, giving a 90-day notice as per the concession agreement
Pursuant to this NCLAT order, both SPVs filed for an order seeking Justice Jain's approval for handing over the Metro Link to HUDA.
Justice Jain, after hearing all concerned parties involved - including authorities and lenders - on Friday allowed RMGL to hand over the Metro Link project on or before September 9, 2019 to HUDA, upholding the termination notice served by the company on June 7, 2019.
Justice Jain, in the order, has also said that HUDA shall be free to engage the services of RMGL at mutually discussed charges to run the Metro Link till such time appropriate/alternate arrangements are made to run the same.
The matter was filed in the Punjab and Haryana High Court in Chandigarh by HUDA on Friday.
The High Court has slated the matter to be heard on September 9 and advised that Metro Link services be continued uninterrupted till midnight of Monday, September 9, 2019 unless otherwise directed by the court.
--IANS
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