Published 15:54 IST, September 9th 2019

Gurgaon Metro operation to be decided by the Punjab and Haryana HC

Punjab and Haryana HC will decide whether the notice served by two IL&FS SPVs regarding the operation of Gurgaon metro is valid and who will operate the metro

Reported by: Akriti Tyagi
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Punjab and Haryana High Court, on Monday will take a decision regarding operation of Gurgaon Rapid Metro. It is country's first fully privately built rapid rail system, whose uninterrupted continuation is at stake.

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Termination tice

On June 7, a 90-day termination tice was served by Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL), two special purpose vehicles (SPVs) floated by IL&FS Infrastructure for rail project, to Haryana Urban Development Authority (HUDA). 

An IL&FS spokesperson h stated that due to various breaches in contract by HUDA, two SPVs h served termination tices, giving a 90 days' tice as per concession agreement. However, some sources claim that two IL&FS SPVs decided to terminate operations for financial reasons. IL&FS is currently undergoing bankruptcy proceedings in NCLAT.

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High Court involvement 

After expiry of termination tice, HUDA h gone to High Court on Friday challenging validity of tice and sought courts directions on continuity of public utility by se two SPVs operating metro link. HC h deferred hearing for Monday and ordered service be continued till Monday midnight.

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Sources say that HUDA should have initiated steps to take over utility and ensure continuity of operations. "Why wait till expiry of termination tice period to challenge validity. Where is contingency plan to take over and run operations," said sources.

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Approval to transfer Gurgaon Metro Link to HUDA

According to IL&FS Infrastructure, RMGL and RMGSL h on Friday got approval from Justice (retd) D K Jain, appointed by NCLAT to oversee ILFS resolution process, to transfer Gurgaon Metro Link to HUDA on September 9. reon, HUDA is free to take a decision as to wher IL&FS will be engd in managing Gurgaon metro or t.

According to sources, "Larger question to be decided is who will run Metro. Once that is resolved, continuity will be ensured."

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Millennium City's daily commute lifeline

Gurgaon Metro is an intrinsic public utility carrying nearly 60,000 commuters every day. It is a fully-elevated rapid transit system which provides connectivity to Delhi Metro from Sikanderpur Station. rapid metro project h commenced operations on its first phase in vember 2013 and second phase in March 2017.

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(With inputs from PTI)

13:57 IST, September 9th 2019