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• National Highways Authority of India (NHAI) on Wednesday served a preliminary notice to the private concessionaire of the Delhi-Gurgaon expressway, asking why the contract should not be terminated.This happened almost a month after the highways ministry asked NHAI to initiate legal action against Delhi-Gurgaon Super Connectivity Ltd for allegedly flouting norms to refinance the project by changing lenders without the authority's prior approval.A top NHAI official said the nearly 27-page notice cited how the company allegedly committed "fraud" in obtaining finance of Rs 1,597 crore. The notice, which was handed over at the developer's office in Gurgaon, also accuses the company of failing to ensure smooth traffic flow at the toll plaza, besides failing to finalize operation and maintenance of the 27.7km expressway for the current financial year.
• "We have given the firm 15 days to respond. Complaints had been pouring in about how commuters are caught in long jams at the 32-lane toll plaza. It's the concessionaire's responsibility to ensure smooth flow of traffic. It could have built a two-tier toll plaza to clear the traffic efficiently," the official added.He also said the company is yet to finalize the operation and maintenance till now. "These are serious violations of the concession agreement. If the responses from the developer are not found satisfactory, the process of cancelling the project will be initiated," the official said.
• According to the ministry's internal probe, the developer changed lenders twice. In the latest instance, it didn't take NHAI's nod while raising a loan of Rs 1,597 crore. The investigation found that before the loan document was submitted to NHAI on October 9, 2010, the disbursement had already started.Confirming receipt of the notice, Delhi-Gurgaon Super Connectivity Ltd's spokesperson said, "We have just received the letter from NHAI and shall respond to it soon. In any case, on all the points mentioned in the letter we have been in active communication with NHAI. As an organization we are committed to the safety and convenience of our commuters and are confident that we will be able to work closely with NHAI to achieve this common objective."
• The official statement added, "The lenders have been changed subsequent to permission granted by NHAI. The financing documents were duly sent to NHAI for review and since, in terms of the concession agreement, NHAI did not provide any comments within the stipulated 30 days it was taken as deemed approved. Due to default of NHAI in execution of ESA the concessionaire has initiated arbitration proceedings and presently the matter is sub-judice since the honourable High Court of Delhi has taken up the request of appointment of arbitrator to adjudicate the dispute."

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