IDBI Bank has lodged a petition against Mumbai Metro One Private Limited (MMOPL) under the Insolvency and Bankruptcy Code (IBC) for the recovery of Rs 133.37 crore ($18 million) in dues. This follows a similar move by the State Bank of India (SBI), which filed a petition for the recovery of Rs 416.08 crore ($56 million). MMOPL, a joint venture between Reliance Infrastructure (RInfra) and Mumbai Metropolitan Region Development Authority (MMRDA), has been operating Mumbai's first Public-Private Partnership (PPP) metro line since June 2014.
The company, in which RInfra holds a 74% stake and MMRDA holds the remaining 26%, is currently seeking legal advice and has proposed an 'One Time Settlement' (OTS) to its lenders, pending shareholder approval. MMOPL's total liabilities, including bank loan facilities of Rs 1650 crore ($222 million) and an External Commercial Borrowing (ECB) facility of US $63.44 million, stand at Rs 4,111.17 crore ($554 million).
RInfra's annual report discloses an eroded net worth, with current liabilities exceeding assets, overdue obligations to lenders, and annual losses of Rs 345.26 crore ($46 million) in FY2023 and Rs 388.70 crore ($52 million) in FY2022.
Additionally, MMOPL has initiated arbitration proceedings against MMRDA over claims totalling Rs 1,766.25 crore ($238 million). These claims pertain to project issues on the Versova-Andheri-Ghatkopar corridor, which was inaugurated by then Prime Minister Manmohan Singh in June 2006 and has been commercially operational since June 2014.
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