The Supreme Court on Monday directed the Mumbai Metropolitan Region Development Authority (MMRDA) to deposit Rs 646 crore with its registry by November 6 in connection with a dispute over an alleged delay in the construction of Reliance Industries' convention-cum-commercial complex in Mumbai's Bandra-Kurla Complex (BKC).
The court also issued notice to Reliance Industries, promoted by Mukesh Ambani, on MMRDA's plea challenging the Bombay High Court's April order that quashed a Rs 1,116-crore demand against the company over the alleged delay.
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The High Court had directed a refund of around Rs 646 crore to Reliance Industries, which had deposited the amount as an additional premium penalty. The Supreme Court's direction to MMRDA to deposit Rs 646 crore with its registry comes as it takes up the dispute.
The apex court will hear MMRDA's plea against Reliance Industries and others on November 18.
The dispute stems from an agreement Reliance and the development authority where the latter had leased a BKC plot to the conglomerate in 2006 for a period of 80 years for building the complex.
According to the lease, construction had to be finished within four years. But in a notice dated September 12, 2017, MMRDA claimed a delay of more than seven years and sought a penalty covering the entire period.
However, RIL moved the Bombay High Court, which, in December 2017, granted protection from coercive action.