Mumbai Metro Dispute Settled in Favor of Anil Ambani’s Firm
In a major legal breakthrough, Anil Ambani’s Reliance Infrastructure has secured a significant win in the long-standing dispute with the Mumbai Metropolitan Region Development Authority (MMRDA). The Bombay High Court has directed MMRDA to pay ₹1,169 crore to Mumbai Metro One Private Limited (MMOPL), a joint venture in which Reliance Infrastructure holds a 74% stake.
What Was the Dispute About?
The case revolved around Mumbai Metro Line 1, which connects Versova, Andheri, and Ghatkopar. The metro line was India’s first public-private partnership (PPP) metro project and has been operational since 2014. However, a financial dispute arose between MMOPL and MMRDA regarding project costs and pending payments.
MMOPL claimed that it had made substantial investments in the construction and operation of the metro, but MMRDA failed to release the agreed amount. After repeated disagreements, MMOPL approached the court seeking financial redress.
High Court’s Verdict
The Bombay High Court ruled in favor of MMOPL, affirming that the payment demand was valid and in line with the contractual terms. The court directed MMRDA to pay ₹1,169 crore, offering a big relief to Reliance Infrastructure.
Relief for Anil Ambani
This decision marks a major financial and reputational boost for Anil Ambani, who has been struggling for over a decade. Once ranked the sixth richest person in the world in 2008 with a net worth of $42 billion, Ambani’s empire shrunk due to rising debt, business setbacks, and regulatory hurdles.
His companies Reliance Communications and Reliance Capital went into bankruptcy in 2019 and 2021 respectively. In 2020, Ambani declared bankruptcy in a UK court, and in 2024, SEBI banned him from the securities market. He narrowly avoided jail in 2019, saved only by a last-minute payment from his brother Mukesh Ambani.
A Comeback Story in the Making
With the High Court’s latest ruling, Anil Ambani appears to be making a strong comeback. The cash inflow from this verdict is likely to improve Reliance Infrastructure’s financial health and strengthen investor confidence.
