New Delhi: National Highways Authority of India (NHAI) has successfully defended an arbitration matter related to the six-laning of the Kamrej–Chalthan section of NH-48 in Gujarat, resulting in substantial savings of public funds.
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According to an official statement issued on Friday, against claims of around Rs 174.49 crore raised by contractor SCIW–Unique Construction (JV), the Arbitral Tribunal awarded only Rs 54 lakh in favour of the claimant.
The dispute pertained to a 15-km project for widening the Kamrej–Chalthan section of NH-48 from four lanes to six lanes, including long-term remedial measures for four black spots on the Kamrej–Bharuch stretch in Gujarat. The project was awarded in Engineering, Procurement and Construction (EPC) mode in June 2016 at a bid cost of Rs 241.41 crore.
NHAI said the appointed date for commencement of work was declared on March 21, 2017, with 87.75 percent land availability. However, during execution, the contractor repeatedly cited land-related constraints, showed slow progress and failed to execute the work in accordance with contractual provisions.
The authority stated that only basic road and drainage works were carried out, while key components such as major structures and flyovers were not undertaken. Owing to continued deficiencies in performance, the contract was mutually foreclosed on May 11, 2020, at a physical progress level of around 49.79 percent.
At the time of foreclosure, both parties had agreed that all claims were fully and finally settled and the contractor had undertaken not to raise future claims. However, in 2022, the contractor initiated arbitration proceedings seeking approximately Rs 174.49 crore against NHAI.
During the proceedings, NHAI submitted detailed documentary and digital evidence before the Arbitral Tribunal, including drone videography, digital project records and technical documentation. According to the authority, the evidence demonstrated that sufficient land was available for execution of the six-laning works and that substantial drainage work had already been completed.
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NHAI further stated that the evidence established the contractor had not undertaken critical project components, including major structures and flyovers, which significantly contributed to the foreclosure of the contract.
Based on the evidence and submissions, the Arbitral Tribunal, in its award dated March 10, 2026, virtually rejected all claims made by the contractor and awarded only Rs 54 lakh against the claim amount of around Rs 174.49 crore.
The authority said the outcome highlighted the importance of digitisation, technology-driven project monitoring, prudent contract management and contractor accountability in safeguarding public funds during infrastructure development projects.
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