NHAI Wins Arbitration Case Over NH-48 Six-Laning Project in Gujarat; Defeats ₹174-Crore Claim

New Delhi: The National Highways Authority of India (NHAI) has secured a major arbitration victory in a dispute related to the six-laning of the Kamrej–Chalthan section of NH-48 in Gujarat, resulting in substantial savings of public funds, a press release said.

Against claims worth around ₹174.49 crore raised by the contractor, the Arbitral Tribunal awarded only ₹54 lakh, highlighting the importance of digital project monitoring, strong documentation and evidence-based contract management by NHAI.

The dispute pertained to the widening of the 15-km Kamrej–Chalthan stretch of NH-48 from four lanes to six lanes, including long-term remedial measures for four black spots on the Kamrej–Bharuch section. The project was awarded in June 2016 to M/s SCIW–Unique Construction (JV) in Engineering, Procurement and Construction (EPC) mode at a bid cost of ₹241.41 crore.

The appointed date for commencement of work was March 21, 2017, with 87.75% land availability.

According to NHAI, the contractor repeatedly cited land-related constraints during execution, showed slow progress and failed to carry out the work as per contract provisions. While basic road and drainage works were undertaken, key components such as major structures and flyovers were not developed.

Due to continued deficiencies in performance, the contract was mutually foreclosed on May 11, 2020, when physical progress had reached around 49.79%.

NHAI said both parties had agreed at the time of foreclosure that all claims stood fully and finally settled, and the contractor had undertaken not to raise any future claims. However, in 2022, the contractor initiated arbitration proceedings seeking around ₹174.49 crore, allegedly contrary to the terms of the foreclosure agreement.

During the proceedings, NHAI submitted detailed documentary and digital evidence before the tribunal, including drone videography, digital project records and technical documents. The authority argued that sufficient land was available for execution of the six-laning works and that substantial drainage work along the Right of Way had already been completed.

The evidence also showed that the contractor had failed to undertake critical portions of the project, including major structures and flyovers, which contributed significantly to the foreclosure of the contract.

Based on the submissions and evidence, the Arbitral Tribunal, in its award dated March 10, 2026, virtually rejected all major claims made by the contractor and awarded only ₹54 lakh against claims of approximately ₹174.49 crore.

NHAI said the case demonstrates the growing importance of digitisation and technology-driven monitoring in infrastructure development and dispute resolution, while reaffirming its commitment to contractor accountability and protection of public funds in highway projects. DeshGujarat