Home / Business and Economy / Telangana Court Suspends NHAI Ban on NCC Ltd
Telangana Court Suspends NHAI Ban on NCC Ltd
27 Feb
Summary
- Telangana High Court issued an interim suspension of NHAI's debarment order.
- NCC Ltd and its subsidiary were debarred for two years from NHAI tenders.
- The debarment is linked to disputes over a highway project in Uttar Pradesh.
On February 27, 2026, infrastructure company NCC Ltd announced that the Telangana High Court had granted an interim suspension of a debarment order issued by the National Highways Authority of India (NHAI).
The High Court's order, dated February 26, 2026, suspends the debarment until the next scheduled hearing. This legal reprieve follows NCC's disclosure that it and its step-down subsidiary, OB Infrastructure Ltd (OBIL), were banned from NHAI tenders for two years, effective February 17, 2026.
The debarment was related to the execution of a highway project in Uttar Pradesh on a BOT (annuity) basis. NCC stated that OBIL had fulfilled its obligations as per the concession agreement dated April 27, 2006, but faced project delays due to NHAI's breaches and delays in land handover.
Disputes between OBIL and NHAI have led to arbitration proceedings, with a favorable award for OBIL in November 2025, which NHAI has challenged in Delhi Court. NCC indicated that NHAI initiated the debarment proceedings during ongoing arbitral proceedings, which NCC is now reviewing to determine further steps.
