MUMBAI (Metro Rail News): State Bank of India (SBI) has taken legal action against Mumbai Metro One (MMOPL) by approaching the National Company Law Tribunal (NCLT) to initiate the Corporate Insolvency Resolution Process (CIRP). MMOPL is a joint venture between Mumbai Metropolitan Regional Development Authority (MMRDA) and Reliance Infrastructure (RInfra).
SBI has filed a petition with NCLT’s Mumbai bench to recover its dues of over Rs 416 Crore from MMOPL, also known as Metro Line 1 in Mumbai City. Other lenders involved are IDBI Bank, Canara Bank, Indian Bank, Bank of Maharashtra, and India Infrastructure Finance Company (UK).
Reliance Infrastructure stated that MMOPL is seeking legal advice to protect its interests in this matter. The financial impact on the company is uncertain and depends on the outcome of the proceedings.
This project, awarded on a public-private partnership basis, involves the design, financing, construction, operation, and maintenance of a 12 Km elevated metro between Versova and Ghatkopar with 12 stations en-route.
Reliance Infrastructure owns 74% stake in the metro line operator, while the remaining 26% is held by MMRDA. MMRDA is reportedly looking to take over the operation from MMOPL.
In 2007, the Mumbai Metropolitan Region Development Authority (MMRDA) awarded the Versova-Andheri-Ghatkopar corridor to the Reliance infrastructure consortium through a global competitive bidding process on a public-private partnership framework. Subsequently, a special-purpose vehicle called Mumbai Metro One was established to carry out the project.
