The total reward is worth around Rs 1,354 crore, including the release of a bank guarantee of Rs 354 crore by DVC, a public sector company. Earlier, DVC had released the bank guarantee and paid Rs 595 crore to the company.
More than 10 years ago, Riot Infrastructure had won a contract to set up a thermal energy project in Raghunathpur in WB for Rs 3,750 crore. The project experienced several disputes and delays, as a result of which DVC demanded compensation from Rel Infra. However, Rel Infra challenged this and an arbitral tribunal agreed with the company. After several lawsuits, Rel Infra will now receive the balance Rs 405 crore from DVC.
In a filing with BSE, Rel Infra said that the HC, “except for certain issues, has upheld the major part of the award to the tune of Rs 1,354 crore, including interest till date and including bank guarantees of Rs 354 crore returned by DVC to the company on the instructions of the arbitral tribunal.”
Rel Infra is investigating the verdict and will take appropriate action, the company said in a statement.