In a packed courtroom on Tuesday afternoon, the Delhi High Court refused to interfere with Delhi Metro Rail Corporation’s (DMRC) decision to award fresh telecom-infrastructure work on the Airport Express Line through direct nomination. Crest Digitel, the existing IBS licensee, had challenged the Letter of Acceptance (LoA) issued to Indus Towers, but the Bench wasn’t persuaded. The matter had traces of tension; every few minutes, the bench pressed counsels to explain why a project linked to mobile connectivity for lakhs of commuters should be stalled at this stage.
Background
The conflict arises from two earlier license agreements—one from 2018 with Indus Towers for telecom tower installations, and another from 2019 with Crest Digitel for In-Building Solutions (IBS) across the Airport Line. Crest argued that DMRC’s latest LoA, dated 13 February 2025, illegally expanded Indus’s old tower contract into the IBS domain, effectively making Crest’s own contract meaningless.
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Crest also accused DMRC of bypassing the tendering process and offering Indus a lower burden by fixing the minimum chargeable area at 12 sq. m per station, compared to Crest’s 20 sq. m. “This creates an uneven field,” counsel argued, calling it discriminatory under Article 14.
DMRC, however, countered with a long record of penalties imposed on Crest since 2019 for missed timelines and network deficiencies. Officials also relied on a 2019 Government of India letter flagging poor mobile connectivity between Airport and Dhaula Kuan, particularly affecting international travellers. A negotiation committee later concluded that the only workable solution was to expand infrastructure through Indus, whose 2018 agreement already permitted variation of up to 25%.
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Court’s Observations
The Bench noted that Rule 194 of the General Financial Rules (GFR) allows single-source selection in “special circumstances,” such as continuity of previous work or urgent departmental interests. “This is not a routine deviation from tendering,” the court remarked at one point. “There were repeated lapses, several penalties, and consistent public complaints.”
The judges paid close attention to the minutes of the DMRC negotiation committee, which detailed the rising failure rate of QR ticketing, UPI payments, and call drops in tunnels. The committee had insisted that Indus match Crest’s rate of ₹11,088 per sq. m per month-eliminating Crest’s pricing argument altogether.
“The bench observed, ‘If mobile connectivity drops, ticketing drops. And when ticketing drops, the system itself suffers. In such a scenario, urgency cannot be ignored.’”
The court also rejected the minimum-area argument, stating that determining area requirements is the sole discretion of the contracting authority. What matters, it added, is the rate-where both parties stand equal.
On Crest’s reliance on the Supreme Court’s Nagar Nigam Meerut judgment, the Bench clarified that even that ruling permits private negotiation in exceptional situations. “This is exactly such a situation,” the judges noted.
Decision
Concluding that DMRC had acted within the boundaries of Rule 194 and had valid reasons to bypass a fresh tender, the Division Bench dismissed the appeal. It added that Crest had approached the court months after Indus had already invested ₹25.6 crore and created third-party rights.
With that, the challenge to the 13 February 2025 LoA came to an end-bringing relief to DMRC, which had repeatedly stressed the urgent need for seamless 5G-ready connectivity on the Airport Express Line.
Case Title: Crest Digitel Pvt. Ltd. vs. Delhi Metro Rail Corporation Ltd. & Indus Towers Ltd. — Challenge to Nomination-Based LoA for 5G IBS Expansion on Airport Express Line
Court & Date: Delhi High Court, Division Bench - Judgment delivered on 18 November 2025.
Case Type: Letters Patent Appeal (LPA 588/2025).
Appellant: Crest Digitel Pvt. Ltd.
Respondents:
R-1: Delhi Metro Rail Corporation (DMRC)
R-2: Indus Towers Ltd.
