Hearing the matter, a division bench comprising Chief Justice Gurmeet Singh Sandhawalia and Justice Bipin Chander Negi expressed serious concern over the manner in which the project was handled, particularly the award of the contract before ensuring uninterrupted availability of land.
The court noted that the detailed project report (DPR) for the 31.195-km stretch was prepared on September 27, 2017, while the Engineering, Procurement and Construction (EPC) contract worth Rs 469 crore was awarded to Patel Infrastructure Limited on September 30, 2021. The project was scheduled to be completed by September 30, 2024.
However, the Bench observed that the contractor was allegedly not provided continuous Right of Way (RoW), preventing full-scale execution of the work. The court recorded that substantial possession of land was handed over only in March 2025, nearly three years after the appointed date of the contract.
The contractor subsequently sought foreclosure of the contract, which was accepted through a settlement agreement signed on October 9, 2025.
Expressing dissatisfaction over the status report filed by the NHAI, the Bench observed that despite specific directions issued on September 8, 2025, the authority had failed to place crucial details on record. These included information regarding the takeover of the project, contractors engaged for completion, the stage of work, reasons for delay, amount released to the contractor, value of fresh contracts and the expected completion timeline.
The court remarked that nothing had been placed on record to indicate how much payment had been made to the contractor out of the total contract value of Rs 469 crore and on what basis foreclosure had been permitted.
The Bench further observed that the explanation regarding non-availability of land did not “find favour” with the court, adding that infrastructure projects should ordinarily be awarded only after completion of land acquisition and possession proceedings. Seeking time to respond, counsel appearing for NHAI requested permission to file a comprehensive affidavit.
The Bench directed NHAI to place complete details regarding maintenance contracts and fresh tenders issued on October 30, 2025, before the next hearing fixed for June 30. Concerned NHAI officers have also been directed to remain personally present before the court on the next date of hearing.
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