Reliance Infrastructure has got a big relief from the Calcutta High Court. The Calcutta High Court has given its verdict in favour of Reliance Infrastructure in the case against Damodar Valley Corporation (DVC). Along with this, the verdict regarding the arbitration award of ₹ 780 crore has also been given in favour of the company. The court has rejected the appeal of DVC and has also directed to issue a bank guarantee of ₹ 600 crore on behalf of Reliance Infrastructure.

Giving information about this in the exchange filing, Reliance Infrastructure said that the Division Bench of the Calcutta High Court has given us relief from pre-award interest, reduced the interest on bank guarantee to ₹ 181 crore and upheld the award. In this way, we have got a total relief of ₹ 780 crore. Along with this, a bank guarantee of ₹ 600 crore will also be issued.

Giving some relief to DVC, the court has reduced the interest rate. The court has reduced ₹ 181 crore from the original arbitration award issued to DVC. Anil Ambani's Reliance Infrastructure also said that it is evaluating this decision of the Calcutta High Court in detail. The company will take further decision after legal advice. The case started in April 2017. Let us tell you that the 1200 MW capacity Raghunathpur Thermal Power Project in West Bengal was built by Reliance Infrastructure for DVS. Reliance Infrastructure was the construction contractor of this plant. The plant was commissioned in 2012. A dispute arose between the two companies in April 2017. Reliance Infrastructure took the legal route after DVC delayed issuing the engineering contract for the project. In 2019, the arbitration tribunal ruled in favour of Reliance Infrastructure and asked DVS to pay ₹896 crores and issue a bank guarantee of ₹354 crores within 4 weeks. It was also asked to pay additional interest at the rate of 15% per annum if the amount was not paid on time. DVC challenged this decision in the Calcutta High Court, where the court also dismissed the petition. Demanding additional payment, Reliance Infrastructure argued in court that all kinds of input costs had increased due to the delay in the project.