Jaiprakash Associates Limited has informed the Exchange regarding 'Intimation under Regulation 30 of the SEBI (Listing Obligations andDisclosure Requirements) Regulation 2015.'.
Awaiting price reaction for this filing.
Jaiprakash Associates (JAL) has informed the exchanges that a dispute with NHAI over a highway project — the four-laning of the Varanasi-Gorakhpur section of NH-29 (Package-III) in Uttar Pradesh under NHDP Phase-IV — has been referred to the Conciliation & Settlement Committee of Independent Experts (CCIE) for amicable settlement. JAL has raised claims totalling Rs. 1,022.54 crore, including Rs. 837.07 crore for extended project duration, Rs. 135.86 crore for minimum wage revisions, Rs. 34.03 crore for delay in land handover, and Rs. 15.58 crore for encroachment removal. NHAI has filed counter-claims of Rs. 484.63 crore, including Rs. 312.48 crore in liquidated damages and Rs. 163.18 crore in toll revenue loss. The original contract was valued at Rs. 840 crore and was scheduled for completion in October 2019. JAL is already undergoing Corporate Insolvency Resolution Process (CIRP) under the IBC Code since June 2024.
The outcome of this conciliation is uncertain but could materially affect JAL's financial recovery under CIRP. If JAL wins its claims, it could improve recoveries for creditors; if NHAI's counter-claims prevail, recoveries could be reduced. The stock may remain volatile given the ongoing insolvency proceedings.