Gurugram Rapid Metro fate hangs in balance! High Court to decide on operations; details here

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New Delhi | September 9, 2019 6:54 PM

Gurugram Rapid Metro: The Rapid Metro is a fully-elevated rapid transit system. It provides connectivity from Delhi Metro Yellow line's Sikanderpur Station to areas of Gurgaon.

rapid metro GURGAONRapid Metro in Gurugram carries an average of 60,000 passengers per day to and out of ‘Millennium City’.

Gurugram Rapid Metro: Will the rapid metro in Gurugram continue to provide services to around 60,000 passengers? The Punjab and Haryana High Court is set to take a decision over the operational continuity of the Gurugram Rapid Metro. Earlier, the Punjab and Haryana HC had ordered that service be continued till Monday(September 9) midnight. Gururgam Rapid Metro is India’s first fully privately financed metro project. The commercial operations of the Rapid Metro began in two phases. While the first phase of operations began in November 2013, the second phase started in March 2017.

There are two special purpose vehicles (SPVs)- Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL)- that have been running the metro services since 2013 and 2017. The Punjab and Haryana HC’s observation came after the expiry of 90-day termination notice served by RMGL and RMGSL. Haryana Urban Development Authority (HUDA) on Friday challenged the validity of termination notice in the Punjab and Haryana HC. It also sought court’s intervention on continuity of the commercial service of Rapid Metro in Gurugram by these two SPVs. The HC had deferred the matter for hearing on Monday.

The Rapid Metro is a fully-elevated rapid transit system. It provides connectivity from Delhi Metro Yellow line’s Sikanderpur Station to areas of Gurgaon. Rapid Metro has stations at DLF Phase 2, Cyber City, DLF Phase 3, NH-8 and Golf Course Road up to Sector 55-56. It carries an average of 60,000 passengers per day to and out of ‘Millennium City’.

An IL&FS spokesperson said that due to various breaches in contract by HUDA, the two SPVs had served termination notices to HUDA on June 7, giving a 90 days’ notice as per the concession agreement. Once HUDA takes over operations of the rapid metro, it will have the authority to decide whether IL&FS will be engaged in managing the rapid rail project or not. However, IL&FS has been facing bankruptcy proceedings in the National Company Law Tribunal (NCLAT). After September 9, HUDA will become the nodal authority to ensure the operations of metro run unhindered, the IL&FS spokesperson was quoted as saying by PTI.

As per NCLAT order on August 8, RMGSL and RMGL, which have been labeled as ‘red entities’, needed nod from from Justice (retd) D K Jain before before transferring, selling, encumbering, dealing, alienating with or creating any third party right, title or interest on any movable or immovable assets. Justice (retd) D K Jain is a former Supreme Court judge. He was entrusted with the responsibility to oversee the IL&FS resolution process.

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