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Gurgaon’s peeps chillax ‘coz Rapid Metro, which was almost on the verge of shutting down, has been legally taken over by Haryana Urban Development Authority (HUDA) this Friday after the nod from the National Company Law Tribunal.
Rapid metro was the first entirely private metro project in the country that had started its operations in November 2013 under the ownership of IL&FS. Its second phase was commenced in 2017. The services of Rapid metro were run by two special purpose vehicles (SPVs)- Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL).
The overall footfall rate rapid metro was facing a sharp fall, with only about 15,000 among the total 200,000 office goers actually availing its services. Also, due to an array of breaches in contact with HUDA, the SPVs had served termination notices to HUDA on June 7, 2019, with a 90-day notice as per the concession agreement. Unable to cope with the bankruptcy, IL&FS had finally approached the Haryana govt for a takeover.
From Monday onwards, HUDA will look after all the operations of Rapid Metro.
Cover Image Courtesy | Source