Supreme Court has extended the deadline for DVC to pay Reliance Infrastructure Rs 898 crore and has taken an undertaking from the chairman of DVC [14.6.22]

Reliance Infrastructure’s nearly three-year wait to get its claims worth Rs 898 crore from Damodar Valley Corporation may come to an end by July. This may help the Anil Ambani-led company repay a part of its debt.

The Supreme Court has extended the deadline set by it for DVC to pay the dues by another eight weeks from May 31 considering the corporation’s weak financials but took an undertaking from its chairman on the certainty of the payment.

The undertaking, legal experts said, means DVC has no other legal course left but to pay off the dues within the stipulated time.

DVC had filed a petition in the Supreme Court seeking an extension of the earlier deadline of May 31 saying that it was facing a financial crunch and it owed a huge sum from the Jharkhand government.

“On considering the grounds raised in the application, we are inclined to grant extension of time,” the Supreme Court said in its order dated May 31. The Court had directed DVC chairman to file an undertaking stating that the dues would be deposited by it with the registrar of High Court at Calcutta within eight weeks, “to safeguard the interest of the respondent (Reliance Infrastructure)”.

Earlier, DVC had released bank guarantees of Reliance Infra to the tune of Rs 354 crore, helping the latter reduce debt which has been the company’s announced endeavour. The private sector infrastructure company suffered a consolidated net loss of Rs 938.4 crore in FY22.


14 Jun 2022