Put notices to road builders on hold, NHAI told

NEW DELHI: The highways ministry on Thursday directed National Highways Authority of India (NHAI) to put the show cause notices to developers in abeyance. NHAI had issued the notices to around 20 construction companies asking them to explain why they should not be barred from future projects for two-to-three years due to failure to complete the awarded projects. Highways minister Nitin Gadkari on Thursday asked NHAI to review each case on its merit before taking "any further action".

Sources said Gadkari termed the NHAI's decision to mention the list of terminated projects and the name of companies on its website as a "hasty" one.

"The NHAI should review these (termination) cases and undertake detailed examination of each case on its own merit, examine the same from legal sustainability, if required, and it should keep any further action on its show cause notices in abeyance till they complete the review process," the minutes of the meeting chaired by Gadkari said.

The minister said, "We have to take decision after taking into account of whose fault led to the termination of contracts. Any blanket decision will have adverse impact on the sector." The developers also stare at the risk of getting bank loans for projects, an official said.The minutes of the meeting, which was attended by NHAI chairman and road secretary said in cases where arbitration has started or the matter is before any court, the highways authority should wait for the final decision before initiating action of debarment of the road developers concerned.

National Highways Authority of India