Good News for Anil Ambani: Anil Ambani's company Reliance Infrastructure has received a big relief from the Kolkata High Court. The court has ruled in favor of Reliance Infra and upheld the arbitration award of Rs 780 crore. Giving information to the stock market, the company has said that the Kolkata High Court has upheld the decision in favor of Reliance Infrastructure Limited in the arbitration dispute of Rs 780 crore with West Bengal-based Damodar Valley Corporation (DVC). 

More than a decade ago, Reliance Infrastructure had got the contract to set up a 1,200 MW thermal power plant in Purulia, West Bengal for Rs 3,750 crore. However, the project was delayed due to disputes and other reasons, leading to DVC seeking damages from Reliance Infrastructure.

However, Reliance Infrastructure challenged it and in 2019 an arbitration tribunal ruled in favor of the company and directed DVC to pay Rs 896 crore to the company. DVC challenged the arbitration tribunal's order in the Calcutta High Court, which the court the court rejected. 

The matter is related to Rs 780 crore.

The company said in a notice to the stock exchange, "The division bench of the Calcutta High Court pronounced its verdict on September 27, 2024, in the petition filed by Damodar Valley Corporation challenging the arbitration award of September 29, 2023, under Section 34. It involves an amount of about Rs 780 crore including interest." 

The company is reviewing the decision.

The company further said that the court "upheld the arbitration award except for pre-allotment interest relief and reduction in interest on bank guarantee amounting to Rs 181 crore, which together with accrued interest amounts to Rs 780 crore. In addition, a bank guarantee of Rs 600 crore will also be released."

Reliance Infra said it is currently reviewing the judgment in detail and based on legal advice, will either proceed to implement the judgment or challenge the decision dated September 27, 2024.