Bombay High Court Grants Partial Relief to MMRDA in Mumbai Metro-1 Dispute with MMOPL

The Bombay High Court has granted partial relief to the Mumbai Metropolitan Region Development Authority (MMRDA) in its long-running dispute with Mumbai Metro One Pvt Ltd (MMOPL), the operator of Mumbai Metro Line-1. The dispute arose over cost overruns in the Versova–Andheri–Ghatkopar metro corridor, where MMOPL, a joint venture led by Reliance Infrastructure, claimed that delays in land acquisition and project clearances significantly increased construction costs. An earlier arbitration award had directed MMRDA to pay substantial compensation to MMOPL.

However, while reviewing the award, the High Court upheld some claims related to cost escalation but set aside several major claims  including overhead expenses, additional interest costs and loss of profit  citing insufficient evidence. As a result, MMRDA’s financial liability has been reduced. 

Earlier, the Supreme Court of India had allowed MMRDA to challenge the award on the condition that it deposit 50% of the awarded amount, around INR 560 crore. The final payable amount will now be recalculated based on the High Court’s ruling, and any excess or shortfall will be adjusted accordingly.