A consortium of senior lenders to the Delhi-Gurgaon Expressway project , led by IDFC, told the Delhi High Court on Friday that it will take over the dues of the concessionaire DS Construction, which the operator owes to the National Highway Authority of India (NHAI), South Muncipal Corporation of Delhi and to its own employees.
However, the counsel on behalf of IDFC also said that there are ?certain commercial points? on which banks have not come to a consensus till now. It is likely that this issue involving the ?commercial points? could become a bone of contention in the settlement process as sources from within the lenders’ camp have indicated that the matter relates to claims raised by the concessionaire even as their dues have deemed to be extinguished under the settlement process.
For now, the matter has been deferred till next Wednesday, allowing the concessionaire to iron our some concerns that it has concerning the ?language? employed in the drafting of the consent order. Indicating a very strong possibility of the settlement going through on the next date, counsel on behalf of DS Construction told the court, ?Broadly speaking on the structure of the settlement, the parties have agreed to substitute the concessionaire and replace him with a new selectee…Since we are giving up our assets, any liability raised in respect of them (toll tax claimed by the SMCD) will be discharged as well.?
According to the application, filed by SMCD’s counsel Gaurang Kanth, the concessionaire had entered into a state support agreement (SSA) with the governments of Haryana, Delhi and NHAI as per which DS Construction was required to integrate its toll tax within its toll collection system. Further, the responsibility to collect toll tax on behalf of the two state governments was entrusted to the concessionaire.
SMCD had raised a contention before the High Court that the concessionaire is still to deposit a toll tax liability of Rs 17 crore. Keeping that relief in mind, SMCD, in its application, demanded that it should be allowed to collect the toll tax from commercial vehicles entering the capital via Rajokari toll plaza.
Earlier, negotiations between parties had indicated that toll booths located at 24 km and 61 km will be removed with only the toll booth at 42 km left operational. Subsequently, the Haryana government demanded that the tolls at 24 km and 42 km should be removed and only the toll booth at 61 km allowed to operate. The Haryana government, has consistently, made this demand on the ground that the 42-km toll booth creates inconvenience for commuters.
NHAI, which had in January last year, backed a proposal to allow IDFC to buy out 74% of the project?s equity. IDFC was to take on the project?s entire debt and buy 74% of DS Construction?s equity for a Re 1 token. It has taken a U-turn and said it does not even recognise IDFC as a bonafide lender to the project. So, if the authority now agrees to the lender substituting the developer, it would amount to significant softening of stance. The other four in the lenders? consortium are Bank of India, PNB, OBC and State Bank of Bikaner and Jaipur.Once the court accepts the settlement of both the lenders and developers, road transport minister Oscar Fernandes will have to give his final consent to decide the fate of the project.
