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DMRC to run Ggn Metro after Oct 16 2 Ex-Judges To Supervise Handover, HC Orders CAG Audit To Determine Debt

September 21, 2019 06:04 AM


DMRC to run Ggn Metro after Oct 16
2 Ex-Judges To Supervise Handover, HC Orders CAG Audit To Determine Debt


Rapid Metro is not shutting down.

The Punjab and Haryana high court on Friday directed Rapid Metro Rail Gurgaon South Limited (RMRGSL) to operate its metro corridor till October 16. After that, Delhi Metro Rail Corporation (DMRC), with whom the Haryana government has signed an agreement, will take over operations of the line.

The high court has directed RMRGSL to hand over operations and maintenance along with control and possession of the corridor to DMRC between September 23 and October 16.

Haryana Mass Rapid Transport Corporation (HMRTC) and Haryana Shahari Vikas Pradhikaran (HSVP), the two agencies that had moved the high court against a termination notice served by Rapid Metro earlier this year, signed an agreement with DMRC on September 16 to run the corridor for five years.

A high court division bench of justices R K Jain and Arun Kumar Tyagi ordered that the metro corridor should be handed over under the supervision of Justice Kailash Gambhir and Justice V K Gupta, retired judges of the Delhi high court. The bench made it clear that the handover process shall be initiated from September 23.

The high court also asked the Comptroller and Auditor General of India (CAG) to ascertain the amount of actual debt due to Rapid Metro. The CAG will be assisted by auditors of both parties — HSVP/ HMRTC and RMRGSL. The CAG has been directed to complete the audit within a period of 30 days. The judges clarified that HSVP and HMRTC would be required to pay 80% of the actual debt, subject to directions of the National Company Law Appellate Tribunal (NCLAT) or any other competent statutory authority since proceedings are pending against the parent company of RMRGSL, the infrastructure giant IL&FS, before different authorities and NCLAT.

Senior advocate Chetan Mittal, who represented HSVP and HMRTC, said the high court had passed these orders after both parties came to a consensus. Rapid Metro had sought compensation of Rs 1,484 crore from the government to sustain its operations, citing breach of contract clauses to make this demand. It served the termination notice this June, expressing its inability to run the metro corridor after September 8.

Rapid Metro began operations in a loop line from Sikanderpur in November 2013. Though built on the premise that it would see an average daily ridership of 1 lakh per day in the first phase, Rapid Metro reached 60,000 daily commuters only after it opened Phase 2 (the corridor along Golf Course Road

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