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.