Company locks horns with NHAI over ending contract

Expressway operator Delhi-Gurgaon Super Connectivity Ltd on Tuesday moved a contempt petition before the Delhi high court against the National Highway Authority of India, whose refusal to revise tolls allegedly amounted to violating the court's order.

Expressway operator Delhi-Gurgaon Super Connectivity Ltd on Tuesday moved a contempt petition before the Delhi high court against the National Highway Authority of India, whose refusal to revise tolls allegedly amounted to violating the court's order.

HT Image

Delhi-Gurgaon Super Connectivity Ltd (DGSCL) operates the expressway between the two cities.

Appearing for DGSCL before justice S Muralidhar, senior advocate NK Kaul said despite the court's stay order on the National Highway Authority of India's (NHAI's) termination of the contract with DGSCL, the toll regulator did not revert to its term of the deal by revising charges.

The court will hear the plea on April 12.

Kaul said the company had sent the proposal to revise the user fees for each category of vehicles for the next financial year (2012-13) but even after the court's stay order, the NHAI allegedly said it would not take a decision because the contract was over.

"The court earlier had stayed the termination order. It is their contractual obligation to revise charges periodically and every year they come into effect from April 1," Kaul said.

The NHAI had on February 17 issued termination notice to the expressway operator for allegedly flouting the terms of the agreement they had entered into.

The highway regulator had said the firm changed financiers, took loans from them and used the money without its approval.

The lawyer told the court the company was ready to sort out its dispute with the NHAI and had sent proposals to it for a settlement.

Meanwhile, the NHAI in its reply alleged Infrastructure Development Finance Company (IDFC) loaned public funds to DGSCL for private purposes "in the garb of refinancing" and the financier had no locus standi to oppose its decision to scrap the deal.

With inputs from agencies