Shares of NCC Ltd crashed 9% on 19 February after the company received a debarment notice from the National Highway Authority of India (NHAI).
NCC announced on Wednesday that the company and its step-down subsidiary OB Infrastructure Ltd. have been forbidden from participating in any NHAI tender/bids for two years, beginning 17 February 2026.
The debarment was issued under the MoRTH policy in connection with the project executed by OBIL for the design, engineering, construction, development, finance, operation, and maintenance of the 220km to 255km Orai-Bhognipur Section on NH-25 and the 421km to 449km Bhognipur-Barah Section on NH-2 in Uttar Pradesh on a BOT (annuity) basis, according to the company.
OBIL constructed and operated the project in accordance with the concession agreement dated 27 April, 2006. The project’s implementation had been delayed due to NHAI’s delay in turning over the land and many other violations, according to the business.
OBIL started arbitration proceedings against NHAI and got a favourable award in November, which the latter challenged in the Delhi Court. The same is now pending. According to NCC, OBIL and NHAI are still at odds over the project’s execution and upkeep.
In September 2025, OBIL began arbitration proceedings against NHAI to resolve the disputes. According to the NCC, the current debarment proceedings were begun by NHAI while the arbitral processes were still ongoing.
The corporation stated that it is analysing the ruling and will take the necessary procedures in accordance with current laws.
“OBIL is contending that the said debarment order has been issued after the completion of the concession period without providing the opportunity of being heard, in violation of principles of natural justice and shall challenge the same as per the law,” NCC said in an exchange filing.
The corporation stated that existing orders and projects will not be impacted financially or operationally.
The impact, if any, on future tenders will be determined by the business prospects that arise during the debarment period. Currently, no quantifiable financial impact can be determined.
However, the stock rebounded from its lows and was trading 0.8% lower at Rs 148.83 each at 12:20 pm on Thursday.
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