NHAI scraps E-way deal with DSC

The National Highways Authority of India (NHAI) last Friday issued a termination order to the Delhi-Gurgaon Expressway operator for violating terms of the agreement it had entered with the agency. Moushumi Das Gupta reports.

The National Highways Authority of India (NHAI) last Friday issued a termination order to the Delhi-Gurgaon Expressway operator for violating terms of the agreement it had entered with the agency.

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The NHAI’s order, however, will not come into force immediately as the concessionaire has approached the Delhi High Court, which will take up the case on March 1. On February 6, the court had directed NHAI to issue the termination order.

"We issued a termination notice to the Gurgaon-based Delhi-Gurgaon Super Connectivity (DSC) Limited last Friday after getting the approval of road minister CP Joshi," said a NHAI official. The official said a final decision on terminating the contract would depend on the court’s decision.

HT had on Nov 15 first reported that DSC might lose its contract for contractual violations.

A DSC spokesperson said, “We are aware that the NHAI had to issue a termination notice as per the directives of the HC. As per the court order, the NHAI has been restrained by the HC from taking any action till the next hearing on March 1.”

A ministry source said DSC had violated several provisions of its contractual agreement, including failing to decongest the 28-km expressway that connects the Millennium City with the Capital. The developer also took unilateral financial decisions that could cause “significant” losses to the government.

The expressway was awarded to a consortium of Jaypee Industries and DSC. It is now run solely by DSC, a company promoted by NRI businessman HS Narula.