DAME has cited "material breach" in the concession agreement as reason for discontinuing its service. In a letter issued on Thursday, it said it was handing over the service to the Delhi Metro Rail Corporation (DMRC). When asked, R-Infra declined to comment.
DMRC accused DAME of violating the concession agreements. However, it said, the rail service would not be affected but go on.
The line was closed in July last year after a massive controversy involving cracks in the line and responsibility thereof. The service restarted in January.
Sources associated with the development recalled DAME had also issued a termination notice to DMRC in October last year, on the ground of material breach. "DAME had argued in its termination that according to the concession agreement, DMRC was suppose to cure civil, engineering, structural and also financial issues within a stipulated period. However, the company claimed that these issues remain unattended and it was not in a position to run the services. The company had also made a strong case for financial restructuring of the project."
However, DMRC had rejected DAME's argument on the restructuring. Subsequently, DMRC referred the matter to arbitration. Pending the outcome, DAME continued to run the services since January. Now comes the latest development.
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