Expressway defects trigger 3-year NHAI ban, tolling suspended, Rs 42L penalty daily

Taking a stern view, the National Highways Authority of India (NHAI) has barred PNC Infratech, the concessionaire for the Kanpur-Lucknow Expressway, from bidding for its projects for three years. This is the maximum penalty allowed under the contract. PNC Infratech’s shares fell 20% on Tuesday after the company disclosed the debarment in a regulatory filing to the BSE.The project, also known as the Awadh Expressway, has faced serious defects, including premature issues such as slippages that appeared within weeks of its inauguration.Officials had attributed the failures on some sections to design issues and said patchwork alone would not address the problem. An earlier investigation commissioned by NHAI and conducted by a professor from IIT Kharagpur had recommended completely rebuilding the affected stretches.According to PNC Infratech’s filing, NHAI issued the debarment order on September 11.