Kurukshetra Expressway Faces Rs 753-Crore Debt Recovery Suit Over Contract Termination Dispute

Kurukshetra Expressway Pvt., a joint venture in which JMC Projects (India) Ltd. holds 49.57% stake, was served with a debt recovery application worth Rs 753 crore over termination payment from the National Highways Authority of India. The application was filed by the Bank of Baroda and other lenders.

Since Kalpataru Projects International Ltd. is the sponsor of Kurukshetra Expressway, it has been made a party of the application, the company said through an exchange filing on Saturday.

Kurukshetra Expressway had entered into a concession agreement with the NHAI for four-laning of Rohtak-Bawal Section of NH-71 in Haryana on a 'design, build, finance, operate, and transfer' basis. However, Kurukshetra Expressway terminated the contract in 2021 due to continuous disruption, stoppage of toll collection, and other events beyond the control of the company, it said.

"The Company has already made necessary provisions in its books of accounts, without prejudice to its and KEPL's legal rights and claims against NHAI and will continue to pursue these against KEPL, its exposure, and potential liabilities in this matter," Kalpataru Projects said in an exchange filing.

It will also ensure that KEPL will continue to pursue its claims and termination payment against NHAI, it said.

Shares of Kalpataru Projects International closed 0.16% higher on Friday at Rs 1,227.60 apiece, as compared with a 0.07% decline in the BSE Sensex.