The National Highways Authority of India (NHAI) has initiated a conciliation process to resolve a significant financial dispute with the bankrupt Jaiprakash Associates Ltd (JAL) concerning the Varanasi-Gorakhpur NH-29 road project.
JAL has claimed ₹1,461.63 crore in compensation for delays and cost overruns related to the four-laning of NH-29 from Km 14B.000 to Km 20B.300 in Uttar Pradesh under NHDP Phase-IV. The company’s claims include costs for resource deployment, damages due to land acquisition delays, revised wage payments, and extended project duration.
In response, NHAI has filed counterclaims worth ₹892.24 crore, citing project delays, losses from toll revenue, and other related damages. To seek an amicable resolution, NHAI has referred the matter to its Conciliation and Settlement Committee of Independent Experts.
The development comes as JAL remains under the Corporate Insolvency Resolution Process (CIRP) initiated by ICICI Bank in 2018 over unpaid debts totaling ₹1,269.10 crore. JAL is currently represented by a Resolution Professional, with its board suspended under the Insolvency and Bankruptcy Code, 2016.
The outcome of the conciliation process will be closely watched, given the scale of the dispute and its implications for public infrastructure and insolvency resolution practices in India.
