NHAI fines Gurgaon-Delhi expressway operator

The National Highways Authority of India (NHAI) has levied a fine of Rs 1 crore on DSC Ltd, the company that built and operates the 28-km Delhi Gurgaon Expressway.

“The authority has imposed a fine of Rs 60 lakh for delay in completion of items listed in the punch list and another Rs 40 lakh for not paying the revenue share on time,” said a source in the ministry.

A punch list contains items a concessionaire has to complete within 120 days after provisional commercial operation of the project begins. The limit for completion of items on the list can be further extended by 180 days.

As for the Rs 40 lakh fine for delay in sharing revenue, the method was specified in the project agreement. If vehicle numbers crossed 120,000 a day, half the extra revenue earned was to be shared with the highways authority. The payment was to be made by the 7th of every month, which the company had delayed.

“If the company does not pay the money (fine), it would be taken from the escrow account (from where all liabilities are paid),” the source added.

A spokesperson for the company confirmed having got the notice and said they were reviewing it. But, said the fine was Rs 80 lakh, not Rs 1 crore.

“In terms of the concession agreement, the punch list attached with the provisional completion certificate was to be completed within a period of 120 days and this period could be extended for a further period of 180 days, with a penalty of Rs 2 lakh per week,” he said.

“We have received a demand of around Rs 60 lakh from the independent consultant (NHAI). Further, we have also received a demand of around Rs 20 lakh from the independent consultant towards interest for certain delays which had taken place in payment of revenue sharing with NHAI,” he added. The Delhi-Gurgaon expressway had been rapped in a parliamentary committee probe for breach of many safety features.