This is among the first recoveries for the government-backed bad bank since it started operations in 2022. The arbitrator has directed the government of Maharashtra (GoM) to immediately transfer the amount to a nationalised bank account, according to the order, a copy of which was seen by ET.
“The award is a result of the arbitration proceedings which started in January 2025,” said a person familiar with the details. “IDRCL had pleaded that it be immediately compensated for the debt portion of the concession agreement which was terminated in 2017 by GoM which according to calculations made then came to ₹691 crore. The arbitrator in hearings completed in December has agreed with the calculations based on the facts at hand.”
IDRCL did not reply to an email seeking comment.
SPTPL was awarded the project to widen and strengthen the Sion-Panvel road to five lanes from three on a build-operate-transfer basis for an overall concession period of 17.5 years between May 2011 and October 2028.
Disputes arose between the state government and the company in 2014 regarding the extent of completion of the project and eventually the agreement was terminated and toll collections taken over by the government’s public works department.
SPTPL was declared as NPA in 2015-16.
In his 26-page order, justice Devadhar said despite taking over the toll collections in November 2017, the state government declined to share the amount collected as toll to service debt due to the lenders and claimants.