The National Highways Authority of India (NHAI) has issued a "preliminary termination notice" to Delhi Gurgaon Superconnectivity Ltd, which is the toll road operator of Delhi-Gurgaon highway.
In most likelihood, this is the first such instance of a developer, who is operating a national highway, being issued this notice.
Under "preliminary termination" notice, the Government provides the developer a 15-day period to represent and retain its position as an operator of the highway.
The Government is providing three key reasons for issuing this notice. One is the company's failure to comply with obligations related to toll plaza, or not being able successfully handle the traffic.
The expressway between Delhi and Gurgaon handles about 1.9 lakh vehicles daily. Many users of this toll road have earlier complained that the waiting time at the toll plaza is "so high that it defeats the very purpose of having a toll-road".
Second, the NHAI contends that the company "fraudulently" obtained financial assistance. "The company obtained a loan of Rs 1,597 crore in 2010, after the project was completed, from IDFC and four other banks, without any prior approval from the NHAI," said reliable sources in the know.
Third, the company has not yet finalised its operation and maintenance programme for the current fiscal. "The developer is supposed to submit its operations and maintenance programme providing details about how it will maintain the highway," said a source in the know.
These details are more physical in nature, with the concessionaire expected to give plans about required road repairs, signage, amongst others.
When contacted, the spokesperson of Delhi Gurgaon Super Connectivity Ltd stated, "We have just received the letter from NHAI....we are studying it and shall respond to it soon. On all the points mentioned in the letter, we have been in active communication with the NHAI....As an organisation we are committed to the safety and convenience of our commuters and are confident that we will be able to work closely with the NHAI to achieve this common objective."