Huda sought direction from the court to the subsidiaries that their 90 day period should start from September 6 instead, when the handover plan was approved.
The Haryana Urban Development Authority (Huda) wants IL&FS entities to continue operating and maintaining the Gurugram Metro Rail till early December. The Gurugram Metro Rail is currently operated by two IL&FS entities — Rapid MetroRail Gurgaon (RMGL) and Rapid MetroRail Gurgaon South (RMGSL).
Following disputes with Haryana Urban Development Authority (Huda) earlier this year, the two companies had served termination notices on June 7, giving 90-days notice, IL&FS Transport Networks informed the exchanges. The companies were accordingly set to exit the project on September 9. Earlier this month, Huda moved the Punjab and Haryana High Court on the dispute over the handover of the Gurugram Metro Rail. Huda sought direction from the court to the subsidiaries that their 90 day period should start from September 6 instead, when the handover plan was approved. This would mean that RMGL and RMGSL can only exit the project in the first week of December.
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On September 6, retired justice DK Jain, mandated to oversee the IL&FS resolution process, allowed the RMGL to hand over the metro project to Huda. According to National Company Law Appellate Tribunal’s directions, resolution of any IL&FS entity needs approval from retired justice DK Jain. In its first hearing on September 9, the court had directed the IL&FS entities to continue operations and maintenance of the project till September 17, when the matter will again be taken up for hearing.
RMGL and RMGSL are categorised as “red” entities under the resolution plan for IL&FS, meaning neither company can service any debt obligations whatsoever.