NHAI Secures Major Relief in Chittorgarh–Udaipur Highway Arbitration as Rs 366.53 Crore in Claims Rejected
New Delhi, October 16 (H.S.): The National Highways Authority of India (NHAI) has secured significant relief in an arbitration dispute concerning the Chittorgarh–Udaipur National Highway project in Rajasthan, successfully defending its contractual
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New Delhi, October 16 (H.S.): The National Highways Authority of India (NHAI) has secured significant relief in an arbitration dispute concerning the Chittorgarh–Udaipur National Highway project in Rajasthan, successfully defending its contractual position. A three-member arbitral tribunal rejected claims worth Rs 366.53 crore filed by the concessionaire, Uchit Expressway Private Limited. The tribunal also allowed NHAI’s counterclaims amounting to Rs 33.54 crore in principal.

According to the Union Ministry of Road Transport and Highways, the dispute relates to the six-laning of the Chittorgarh–Udaipur section of National Highway 76 in Rajasthan. The project covers a stretch of 93.5 kilometres, with Uchit Expressway Private Limited, backed by TRIL Roads Private Limited, serving as the concessionaire. The claims and counterclaims were adjudicated by a three-member arbitral tribunal constituted under the Society for Affordable Redressal of Disputes (SAROD).

The tribunal rejected the company’s claims totalling Rs 366.53 crore, including a demand for Rs 238.18 crore in additional costs allegedly incurred due to project delays caused by the COVID-19 pandemic. The tribunal allowed only Rs 14.51 crore of the company’s claims. In addition, a refund of Rs 2.82 crore was conditionally approved.

NHAI’s counterclaims included Rs 27 crore for the recovery of costs associated with works removed from the project scope, Rs 4.03 crore for failure to maintain the highway, and Rs 2.51 crore for unauthorised toll collection after the project’s scheduled completion date in March 2021. The tribunal accepted counterclaims in NHAI’s favour amounting to Rs 33.54 crore in principal across these categories.

The ministry also stated that NHAI had secured favourable outcomes in several other arbitration disputes in recent months. In July 2026, the authority successfully defended claims worth approximately Rs 3,177 crore in a case involving Bareilly Highways Project Limited. In June 2026, an arbitration award amounting to Rs 1,202 crore was delivered in NHAI’s favour in a dispute concerning the Tumkur–Chitradurga six-laning project in Karnataka.

Similarly, in April 2026, two arbitration disputes relating to the Panipat–Jalandhar highway project were settled for Rs 819.96 crore. These cases involved claims of approximately Rs 8,375 crore by the concessionaire and counterclaims of Rs 2,888.64 crore by NHAI.

In another case in May 2026, concerning the six-laning of the Kamrej–Chalthan section of National Highway 48 in Gujarat, the tribunal awarded only Rs 54 lakh against the contractor’s claim of approximately Rs 174.49 crore.

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Hindusthan Samachar / Jun Sarkar


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