The Supreme Court on Monday stayed a Reliance Infrastructure-owned company from recovering Rs 4,800 crore in arbitration award from state-run Delhi Metro Rail Corporation. DMRC has filed a curative petition with the court to reconsider the arbitration that last year went in favour of Delhi Airport Metro Express Private Limited (DAMEPL). The legal battle continues, but in a corner of public policy the expenditure department of the finance ministry is working to ensure such instances do not hurt ease of doing business.
The second edition of the Vivad Se Vishwas scheme, launched by the department last week, is meant to take on the ogre of contractual disputes. These are disputes which sour relations between the private sector and government agencies. The problem is about what happens when arbitration cases go against the government. Department officers do not give up leading to interminable court cases.
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