GMDA asks HSVP to pursue ₹100 crore pipeline arbitration case

The contractor alleges delays in the 18-km water pipeline project. GMDA said HSVP has not filed its defence or attended arbitration hearings.

The Gurugram Metropolitan Development Authority (GMDA) has asked the Haryana Shahari Vikas Pradhikaran (HSVP) to actively pursue an arbitration case filed by an HSVP contractor seeking around ₹100 crore as compensation for alleged delays in executing the Chandu Budhera water treatment plant to Vatika Chowk pipeline project, officials said.

The ₹144 crore project was awarded in 2012. Former Supreme Court justice Ashok Bhan was appointed arbitrator in 2025. (HT Archive)

In a July 10 letter, GMDA said HSVP, the primary respondent, had neither attended the arbitration proceedings nor filed its statement of defence, despite GMDA defending the matter as the secondary respondent. “The arbitral proceedings are in progress in the matter, but HSVP has not filled a statement of defence before the learned arbitrator to date and is neither attending, which may result in an adverse arbitral award,” the letter said.

The dispute relates to an approximately 18-km drinking water pipeline project awarded by HSVP on December 6, 2012, for about ₹144 crore. The contractor was required to complete the work within 21 months, but land litigation and technical issues delayed the project. After GMDA took over the city’s master water supply network in 2018, it was made the secondary respondent when the contractor approached the Punjab and Haryana High Court in 2021. The court appointed former Supreme Court justice Ashok Bhan as arbitrator in 2025.

GMDA also sought complete project records from HSVP, saying the absence of documents hindered its defence. Officials said the contractor has sought compensation for idle labour and machinery, besides technical disputes over pipeline specifications.

A senior HSVP engineering official said all legal and technical documents related to the project have been shared with GMDA, and any additional records sought will also be provided. “Since the project has been transferred to GMDA, it is expected to handle the legal proceedings. HSVP will take any legal action required before the court,” he said.

GMDA said 32 leakages have been repaired after testing began in June. “This pipeline is crucial to ensure the functioning of the Sector 72 water boosting station to supply water in areas along SPR,” a GMDA official said. A senior HSVP official said directions had been issued to pursue the matter as a priority.