The company received a letter dated September 10, 2026 (Ref. No. NHAI/CO/13013/547/22-23/Dinengpasoh FP/E-276473/843) from the National Highways Authority of India (NHAI), a statutory authority constituted under the National Highways Authority of India Act, 1988, Ministry of Road Transport and Highways, Government of India.
The Competent Authority of NHAI has approved forfeiture of part Performance Security amounting to ₹1,60,00,000/- (Rupees One Crore Sixty Lakh only) furnished by the company under the Contract Agreement dated June 10, 2022 (Work Order No. NHAI/13013/547/CO/22-23/CB/Dinengpasoh FP/E-42345/17 dated June 10, 2022). This contract was for engagement as the user fee collection agency at Diengpasoh Fee Plaza (Km 24.700) on the Shillong Bypass connecting NH-40 and NH-44, in the State of Meghalaya.
The forfeiture has been imposed under Clause 18(a) of the Contract Agreement, which provides for forfeiture of part Performance Security equal to 15 days' agreed remittance (₹1,60,00,000/-) upon completion of three incidents of levy of penalty for excess charging of User Fee.
The action is based on findings of a Forensic Audit conducted by M/s Deloitte Touche Tohmatsu India Ltd. (report dated February 14, 2025) that alleged excess User Fee amounting to ₹240/- was charged from road users through Electronic Toll Collection (ETC) across 8 (eight) FASTag transactions/IDs at Diengpasoh Fee Plaza on September 3, 2022. This incident formed part of three such instances for which penalties were levied.
In addition to the forfeiture amount of ₹1,60,00,000/-, penalties totaling ₹3,60,000/- (Three Lakhs Sixty Thousand) were imposed on the company.
The company received the NHAI letter on September 10, 2026. No ad-interim or interim order, or any other communication, has been received by the company in this regard.
Regarding financial impact: Pursuant to the order, an amount of ₹1,60,00,000/- stands forfeited towards part Performance Security. As the Performance Security is presently not available with RO Guwahati for adjustment, NHAI has reserved its right to recover/adjust this amount from any other ongoing contract of the company with NHAI, or from the Common Bank Guarantee available with NHAI HQ, as deemed fit, in accordance with applicable contractual provisions.
As a remedial measure and to protect its interests, the company intends to file a Writ Petition before the appropriate Hon'ble Court, challenging the forfeiture order and seeking appropriate relief in accordance with applicable law.
The company will keep the stock exchanges informed of any further developments in this regard.