NHAI Empowered to Terminate Pune-Based Contractor for Delhi-Mumbai Expressway Delays: HC

NEW DELHI: The Delhi High Court has ruled that the National Highways Authority of India (NHAI) can take steps to terminate the contract with Pune-based Roadways Solutions India Infra Ltd (RSIIL) due to significant delays in the construction of a 35-km stretch of the Delhi-Mumbai Expressway. The court highlighted the critical need for a well-constructed highway to ensure the smooth and free movement of vehicles for the benefit of citizens and the nation.

The bench, comprising Justices Dinesh Mehta and Vinod Kumar, stated, 'The balance of convenience entirely lies in the favor of the nation and citizens of India and in turn NHAI, and not in favor of the contractor. The citizenry cannot be deprived of a well-constructed highway to ensure smooth and free movement.' This decision comes after NHAI served a 'notice of intent to terminate' the contract to RSIIL on December 23, 2025.

RSIIL had challenged the notice before a single-judge bench, which initially stayed the termination. However, NHAI appealed this decision, leading to the current ruling by the High Court. The court has restrained NHAI from encashing the insurance surety bonds and bank guarantees furnished by the contractor until the disposal of its application before the single judge. However, NHAI is free to pass appropriate orders and, if necessary, issue a new Notice Inviting Tender (NIT) to engage another agency for completing the construction of the 35-km stretch.

RSIIL has been awarded contracts for three stretches totaling 87 km in the Gujarat portion of the Rs 1 lakh crore Delhi-Mumbai Expressway project. According to NHAI, the progress on these stretches has been slow, causing inconvenience to passengers who have to take detours. Solicitor General Tushar Mehta argued that the contractor's failure to complete the work on these stretches has led to significant disruptions for travelers on the newly constructed expressway.

Sources have revealed that NHAI will soon issue cure period notices for two other stretches that RSIIL is constructing, where progress has also been slow. A cure period notice is typically issued to a contractor to rectify any breaches within 60 days before initiating the termination process. This move by NHAI underscores the urgency to complete the expressway project on time and ensure that it meets the required standards for safety and efficiency.

The Delhi-Mumbai Expressway is a crucial infrastructure project aimed at reducing travel time between the two major cities from 18 hours to about 12 hours. It is expected to boost economic activities and improve connectivity, making it a priority for both the government and the public. The decision by the High Court is seen as a significant step towards ensuring that the project remains on track and that the public's interests are protected.