NHAI holds up Rs 20L dues for 9 yrs, coughs up Rs 4.5cr
NEW DELHI: In a classic case that substantiates how red tape can result in government entities paying a big price at a later stage, the NHAI ended up releasing nearly Rs 4.5 crore to a private firm for holding back the clearing of bills of barely Rs 20 lakh, eight to nine years back.
The National Highways Authority of India made the final payment in December 2019, according to documents accessed by TOI, after the private firm won the arbitration award and also two cases in the Delhi high court. The NHAI had to pay this large amount due to the high interest rate. The firm was entitled to get 27% interest since it was registered under the MSME Development Act of 2006.
