Mumbai Metro Operator Faces Bankruptcy Proceedings Over Rs 416 Crore Dues

Mumbai, 6th August 2023: Mumbai Metro One Private Limited (MMOPL), the operator of the Ghatkopar-Andheri-Versova Metro 1, is facing a significant challenge as the State Bank of India (SBI) has initiated bankruptcy proceedings to recover Rs 416.08 crore. The petition has been submitted to the National Company Law Tribunal.

MMOPL is a collaborative venture between the Mumbai Metropolitan Region Development Authority (MMRDA) and Reliance Infra, chaired by Anil Ambani. Since 2014, MMOPL has overseen Mumbai’s inaugural metro line. Holding a majority stake of 76 percent in Metro 1, MMOPL works in tandem with MMRDA, which holds the remaining 26 percent. Over time, the construction cost for Metro 1 escalated from 2356 crores to 4321 crores. To recoup these expenses, a request was made to the court to consider a fare increase, yet MMOPL’s plea was not granted.

Subsequently, faced with financial challenges, MMOPL proposed handing over the management of Metro 1 to MMRDA. This proposition was accepted, leading to the initiation of consultant selection in 2021 to facilitate the transition. Regrettably, this process has encountered obstacles and remains unresolved. Adding to MMOPL’s predicament, a bankruptcy petition has been filed against the company.

MMOPL has obtained loans from various institutions including SBI, Canara Bank, IDBI Bank, Indian Bank, and Bank of Maharashtra. In a significant development, SBI has moved forward with a bankruptcy petition to recover dues amounting to 416.08 crores from MMOPL. This action is anticipated to exacerbate the challenges facing MMOPL.

While contacted, the MMOPL spokesperson declined to provide a statement. Reliance Infra informed the media that MMOPL is currently seeking legal counsel to address this matter.