NHAI to seek conciliation with Jaiprakash Associates over ₹1,461 cr claims

State-owned NHAI has decided to go for a conciliation process on the financial dispute with bankrupt Jaiprakash Associates Ltd concerning Varanasi Gorakhpur road projects.

In the ongoing dispute, Jaiprakash Associates has sought Rs 1,461.63 crore compensation for 'four laning of Varanasi Gorakhpur Section of NH-29 from Km 14B.000 to Km 20B. 300 in Uttar Pradesh under NHDP Phase-IV on EPC Mode.

"The company has submitted its claims amounting to Rs 1,461.63 crore on account of deployment of resources for removal of encroachment/ encumbrances within ROW, damages for delay in providing land, damages towards payment of revised minimum wages paid and additional cost incurred due to extended duration of the project," Jaiprakash Associates Ltd said in a regulatory filing.

According to the filing, NHAI has submitted its counterclaims amounting to Rs 892.24 crore on account of supervision consultancy services due to alleged delay in project completion, direct revenue loss on account of toll collection and L.D. etc.

"...NHAI has referred the subjected dispute for conciliation/amicable settlement to the Conciliation & Settlement Committee of Independent Experts established by NHAI," it added.

ICICI Bank Ltd filed a petition on September 07, 2018, before the National Company Law Tribunal Allahabad Bench, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process against Jaiprakash Associates Ltd showing a financial debt of Rs 1,269.10 crore in respect of various loans.

Jaiprakash Associates Ltd is undergoing CIRP under I&B Code, 2016 and hence its management stands suspended and it can only be represented by the Resolution Professional.