NHAI and Jaiprakash Associates Enter Dispute Resolution Over Varanasi-Gorakhpur Project

The National Highways Authority of India (NHAI) and Jaiprakash Associates Ltd are entering a conciliation process regarding a financial dispute over the Varanasi-Gorakhpur road project. Jaiprakash Associates is claiming Rs 1,461.63 crore in compensation, while NHAI has filed counterclaims worth Rs 892.24 crore.

The National Highways Authority of India (NHAI) has opted for a conciliation process to address its financial dispute with Jaiprakash Associates Ltd, a bankrupt entity, concerning the road projects between Varanasi and Gorakhpur. The ongoing dispute sees Jaiprakash Associates demanding a compensation of Rs 1,461.63 crore.

This amount is claimed for their involvement in the 'four-laning of Varanasi Gorakhpur Section of NH-29' under the National Highways Development Project Phase-IV. They have cited resource allocation for encroachment removal, project delays, and wage revisions as reasons for their claims.

In response, NHAI has submitted counterclaims amounting to Rs 892.24 crore, addressing issues like project delays, revenue loss from tolls, and more. Both parties are set to engage with NHAI's Conciliation & Settlement Committee. Meanwhile, Jaiprakash Associates is under Corporate Insolvency Resolution Process, limiting its management capabilities.

(With inputs from agencies.)