PSP Projects Wins Arbitration Case Against BNCMC, Awarded ₹61.44 Crore

13 Jan 2026 , 10:53 AM

PSP Projects Ltd on Monday, January 12, said it has received a favourable arbitration award in the dispute involving Bhiwandi Nizampur City Municipal Corporation.

The company said the Arbitral Tribunal pronounced the award on January 11, 2026, bringing the arbitration proceedings between the two parties to a formal conclusion. As per the arbitral award, Bhiwandi Nizampur City Municipal Corporation has been directed to pay ₹61.44 crore as the principal amount to PSP Projects.

In addition to the principal sum, the municipal corporation has also been directed to pay interest accrued up to the date of the award, with the total amount payable required to be settled within 60 days.

PSP Projects stated that if the payment is not made within the stipulated 60 day period, the municipal corporation will be liable to pay interest at the rate of 11 percent per annum on the awarded amount along with accrued interest, calculated from the date of the award until the actual date of payment.

The company clarified that the arbitration award is not a settlement between the parties but represents a final and binding arbitral decision delivered by the tribunal. The arbitration proceedings stem from disputes arising out of earlier contractual engagements, for which PSP Projects had initiated legal recourse under the arbitration mechanism.

PSP Projects is engaged in executing industrial, institutional, residential, and high end construction projects across India. The company is also known for executing landmark developments, including the Surat Diamond Bourse, one of the largest commercial office complexes in the country.

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