HC stay on NHAI severing PPP contract extended

NHAI had moved to end its contract with DGSCL over irregularities

PTI | March 1, 2012



The Delhi High Court today extended its stay on the National Highways Authority of India's (NHAI) decision to terminate its contract to the Delhi-Gurgaon Super Connectivity Limited (DGSCL) to operate the expressway between the capital and the NCR township.

Justice S Muralidhar, in his order, said the court's earlier order restraining the NHAI from taking further action against DGSCL will remain in force till March 27, the next date of hearing.

The order came on the private firm's plea to restrain NHAI from taking any coercive action against it.

The NHAI earlier had accused DGSCL of serious financial fraud and failure to improve services at the 32-lane toll plaza, while ordering termination of its deal with it.

The NHAI had accused the concessionaire DGSCL, of fraud in the form of refinancing the project without getting its approval.

The NHAI had issued a preliminary termination notice to the concessionaire on December 7 last year and the private firm had challenged this before the high court.

The NHAI later, in its affidavit to the court, had stated that it wanted to scrap the deal to which the court asked the NHAI to send the termination order within three days.

Meanwhile, the Infrastructure Development Finance Company (IDFC), which provided credit facility of Rs 1,597 crore to DGSCL for its 28 kilometer road project, moved the high court saying the termination of the contract of operating the toll plaza will cause a huge loss to it.

Seeking a stay on the termination order, the IDFC said the highways authority has violated the tripartite agreement it had signed with the DGSCL and the government.

According to the IDFC, under the concession agreement, the NHAI is bound to send notice for any termination to the banks and financial institutions too so that they have two months to cure any default.

The IDFC has said the failure on the part of the NHAI to send them a notice has deprived them of their valuable rights as per the provisions of the contract agreement.

Meanwhile, the court, on March 27, will also hear the IDFC plea along with a civil suit filed by the DGSCL.

Comments

 

Other News

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter