Intimation under Regulation 30 of the SEBI (LODR)
Awaiting price reaction for this filing.
The National Highways Authority of India (NHAI) has referred its dispute with Jaiprakash Associates Ltd to a Conciliation Committee of Independent Experts (CCIE-2) for amicable settlement. The dispute relates to a four-laning highway project on the Varanasi-Gorakhpur section of NH-29 (Package-IV) in Uttar Pradesh, originally a Rs 1,030 crore EPC contract that was due for completion in October 2019. Jaiprakash Associates has filed claims of Rs 1,461.63 crore, mainly for additional costs due to extended project duration (Rs 1,235 Cr) and minimum wage revisions under Change in Law (Rs 177 Cr). NHAI has filed counter-claims of Rs 892.24 crore, including Rs 654 Cr in liquidated damages and Rs 232 Cr in alleged toll revenue loss. The company is already undergoing Corporate Insolvency Resolution Process (CIRP) after NCLT Allahabad admitted ICICI Bank's petition in June 2024, with Bhuvan Madan as Resolution Professional.
The dispute outcome is uncertain, but given JAL is already in insolvency proceedings, any settlement amount recovered could add to the pool of assets available to creditors. The dispute itself is not new, but the formal conciliation step shows efforts to resolve claims before further legal escalation. Shareholders should note this is a conciliation process, not a final award, so no immediate financial impact is confirmed.