Court stays show-cause notice against Gurgaon e-way operator

In a relief to the operator of the Delhi-Gurgaon expressway, the Delhi High Court on Friday stayed a fresh show-cause notice issued to it by the National Highway Authority of India (NHAI), threatening cancellation of the contract, Harish V Nair reports.

In a relief to the operator of the Delhi-Gurgaon expressway, the Delhi High Court on Friday stayed a fresh show-cause notice issued to it by the National Highway Authority of India (NHAI), threatening cancellation of the contract.

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The NHAI had issued the notice on March 8 for the alleged failure by operator Delhi-Gurgaon Super Connectivity Ltd (DGSCL) to upgrade facilities and renovate the road that connects the national Capital with the Millennium City. The 15-day notice period was to expire on Saturday by which the operator had to send a reply.

Justice Manmohan Singh, who is hearing a petition filed by the DGSCL against the first termination notice issued on February 18, 2012, said the operation of the fresh notice had been stayed till the court took a final stand on the validity of the earlier notice.

The fresh notice has come five months after both the parties had submitted that they had settled their differences and had signed an MoU.

“It is understood by the parties that the termination notice dated December 7, 2011, and the subsequent termination order dated February 18 issued by the NHAI to the concessionaire stands withdrawn,” the court had said on September 18, 2012.

The financiers of the project Infrastructure Development Finance Company Ltd, which has provided a credit facility of R1,597 crore to the developer had also signed the MoU.