Delhi HC paves way to scrap GMR’s road contract

The Delhi high court on Monday cleared the way for scrapping the contract for country's largest highway project. Justice V K Rao dismissed the petition of infrastructure majorGMR challenging NHAI's move to invoke the bank guarantee. Sources said that concessionaire's Rs 269 crore bank guarantee is lying with NHAI Astrology & Numerology books

GMR had bagged the 555 km Kishangarh-Udaipur-Ahmedabad highway project costing Rs 5,500 crore in November 2011. Citing failure on the part of NHAI to get statutory clearances, the private player had issued a notice of intention to terminate the contract with NHAI in 2012. Thereafter, it had moved the HC seeking stay on NHAI invoking its bank guarantee. 

NHAI had rejected GMR's termination notice, saying this move was based on flimsy ground and was factually not-correct. "However, in the due course of time, efforts were made to revive the project. But nothing helped. So, even NHAI board had approved to terminate the contract. Now with the HC order, the contract stands terminated as termination ends with encashment of the bank guarantee," said a road ministry official Commodity Trading Tips

Putting an end to the legal battle of over two years between the two parties, Justice Rao observed, "This court is of the view that the petitioner has not been able to establish a prima facie case in its favour. The balance of convenience is also not in favour of the petitioner for this court to injunct the respondent from invoking the bank guarantee. I do not see any merit in the petition, the same is dismissed." 

NHAI sources said they would soon take a call on the future course of action. They added the company has already invoked arbitration claiming Rs 1,200 crore. "We will also decide on whether we need to go ahead with the plan to expand the highway or not Jackpot Trading Tips