Intimation under Regulation 30 of the SEBI (LODR)
Awaiting price reaction for this filing.
Jaiprakash Associates Ltd (JAL) has informed exchanges that its dispute with NHAI over a highway project (Four-Laning of Varanasi-Gorakhpur NH-29 section, Package-III, UP) has been referred to the Conciliation & Settlement Committee of Independent Experts (CCIE) for amicable settlement. JAL has claimed Rs. 1,022.54 crore from NHAI covering encroachment removal costs, delay in land handover, minimum wage revisions, and extended project duration costs. NHAI has filed counter-claims of Rs. 484.63 crore, including Rs. 312.48 crore in liquidated damages and Rs. 163.18 crore in lost toll revenue. The original contract was worth Rs. 840 crore and was scheduled for completion in October 2019. Importantly, the filing also confirms that JAL is currently under Corporate Insolvency Resolution Process (CIRP) since June 2024, with the Supreme Court having dismissed JAL's appeal against NCLT admission in January 2025.
The conciliation is unlikely to materially improve JAL's position as the company is already under CIRP and its management is suspended — the Resolution Professional will handle the matter. Resolution of this dispute could become part of the broader insolvency process, potentially adding to or reducing the overall claims pool for creditors. Near-term stock impact is expected to be neutral to slightly negative given the heavy counter-claim exposure.