NHAI suffers Rs 400 cr loss on non-recovery of damages from builders


NHAI suffers Rs 400 cr loss on non-recovery of damages from builders

National Highways Authority of India (NHAI) suffered losses of about Rs 400 crore on various counts including undue favour to developers by not recovering damages for project delays, government auditor CAG has said.

Indicting NHAI for undue favour to a developer on a stretch, CAG in its latest report said it cost NHAI a loss of nearly Rs 100 crore.

“NHAI extended undue benefit to the concessionaire to the tune of Rs 99.27 crore by not taking prompt action to recover the damages and maintenance cost from the concessionaire on account of its failure in achieving the project milestones and in meeting the maintenance obligations,” CAG said in its report tabled in Parliament yesterday.

It said NHAI in March 2012 had entered into a concession pact with Vijayawada Gundugolanu Road Project Pvt Ltd for six laning of Vijayawada-Gundugolanu section of NH 5 but served termination notice as work was not commenced till August 2016. Read More

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