Rapid Metro’s finances: CAG audit sought

The Haryana government, on Wednesday, approached the Punjab and Haryana High Court (HC) seeking appointment of the Comptroller and Auditor General (CAG) of India for conducting a forensic audit of the Rapid Metro’s finances. The high court has adjourned the matter till Friday, when it is expected to pronounce a decision on the request by the Haryana government.

The court also heard a proposal by IL&FS, according to which the company has offered to continue running the service until October 16. An email detailing the terms of this proposal was also sent to the chief administrator, Haryana Shahari Vikas Pradhikaran (HSVP), by IL&FS Rail on Tuesday evening.

The IL&FS had floated the Rapid Metro Gurugram Limited (RMGL) and Rapid Metro Gurugram South Limited (RMGSL), two special purpose vehicles, which have been running the service since 2013 and 2017, respectively. “RMGL/RMGSL will continue to operate their Metro Link for a period of 30 days (i.e. until October 16, 2019) during which (a) the ‘debt due’ as per financing documents in terms of the concession agreement may be determined by an auditor appointed by the Hon’ble Court; and (b) the process for transfer of the Metro Links may be undertaken under the supervision of two Hon’ble (retired) High Court judges,” reads IL&FS’s email to the Haryana government, a copy of which is with the Hindustan Times.

According to the original contract between the two parties, the minimum amount to be paid by the Haryana government (in case of breach of contract by either party) is 80% of total debt accrued by the project.