NHAI Defends ₹3,177-Crore Claim in Bareilly–Sitapur Highway Arbitration

New Delhi | July 27, 2026

The National Highways Authority of India (NHAI) has achieved a major legal and financial victory, successfully defending a high-stakes arbitration case involving the Bareilly–Sitapur BOT (Toll) project in Uttar Pradesh.

Against total claims aggregating to approximately ₹3,177 crore raised by the concessionaire, Bareilly Highways Project Limited (BHPL)—promoted by M/s Era Infra Engineering Limited—the three-member Arbitral Tribunal awarded only ₹46 crore plus applicable interest, effectively rejecting the vast majority of the claims and safeguarding public funds.

Arbitration Case Summary

• Project: Bareilly–Sitapur BOT (Toll) Section (151 km, NH 24 / NH 30 in UP)

• Concessionaire: Bareilly Highways Project Limited (Era Infra Engineering Ltd.)

• Status: Concession Agreement terminated by NHAI in May 2019

• Claim vs. Award: Concessionaire claimed ₹3,177 crore across 30 counts; Tribunal awarded only ₹46 crore (plus interest) on 3 claims

• Key Finding: The Tribunal upheld the Supplementary Agreement dated March 30, 2015, determining that project delays were concurrent and largely attributable to contractual dynamics rather than sole NHAI default.

Series of Recent Legal Victories for NHAI

The award adds to a series of substantial arbitration outcomes secured by NHAI in recent months:

Strategic Impact: The decision reinforces NHAI’s focus on robust contractual oversight, legal defense strategies, and financial discipline in executing large-scale National Highway infrastructure projects.