The National Highways Authority of India (NHAI) today said it is planning legal action against GMR Infrastructure after the latter today officially announced that its subsidiary, GMR Kishangarh Udaipur Ahmedabad Expressways, has terminated a contract with the highways authority for building the Kishangarh-Udaipur-Ahmedabad highway.
"GMR Infrastructure has said that GMR Kishangarh Udaipur Ahmedabad Expressways Limited, a subsidiary of the company, has terminated the concession agreement entered into with NHAI for six laning of 555 Km Kishangarh-Udaipur-Ahmedabad highway," the company informed the BSE on Monday.
One option for NHAI is to blacklist the company for at least one year. Under the second option, GMR will have to forfeit 5 per cent of the total project cost as bank guarantee.
GMR sources told NDTV Profit that they will move the Delhi High Court over forfeiting bank guarantees.
GMR had won the project in September, 2011, through the international competitive bidding route. It is to be implemented through the Public Private Partnership (PPP) model on Design, Build, Finance, Operate and Transfer basis. The infrastructure major currently has four annuity projects and six toll projects.
Shares of the company closed at Rs 20.55 apiece, up 3.27 per cent on the BSE.