In Brief
The Supreme Court upheld a High Court consent order requiring Haryana Mass Rapid Transport Corporation (HMRTC) and Haryana Shehri Vikas Pradhikaran (HSVP) to deposit 80% of the debt due to lenders (as determined by an independent CAG audit) within three months in an Escrow Account maintained by nationalized banks. Though an FIR had been lodged against the parent company (IL&FS group) alleging inflated project costs, the Court held that HSVP/HMRTC could not resile from their solemn commitment made before the High Court. A consent order, agreed to after mutual negotiations and with full knowledge of the circumstances, binds the parties like a contract. Remaining disputes regarding the audit's correctness and the validity of termination notices would be resolved through arbitration as provided in the Concession Agreements. The Court emphasized the vital public interest in maintaining the integrity of infrastructure financing arrangements.
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