Bharat Road Network associate MTPL receives termination of CA notice from MPRDC

31 Jan 2022 , 09:46 AM

Bharat Road Network Limited associate company Mahakaleshwar Tollways Private Limited (MTPL) which is the concessionaire for four laning of the Indore-Ujjain portion from Ch. 5/2 to Ch. 53 on State Highway 27 on a DBFOT pattern, on a BOT Toll basis in the state of Madhya Pradesh, has received a Notice dated January 1, 2022, from M.P. Road Development Corporation Ltd (MPRDC), for Termination of Concession Agreement (CA) entered into between MTPL and MPRDC, under clause 37 of the CA with effect from 28.01.2022, alleging Concessionaire default.

As per the said Notice, the Authority is deemed to have taken possession and control of Project Highway forthwith and has directed MTPL to hand over the land and other immovable property to representative of Authority forthwith complying with other related allied obligations in aforesaid clause.

MTPL had earlier issued a cure period notice to MPRDC on September 8, 2021 seeking MPRDC to cure the defaults from their side. This action by MPRDC seems to be a counter to the cure period notice issued by MTPL. MTPL is taking appropriate legal steps to protect its interest.

At around 9.50 am, Bharat Road Network Ltd was trading at Rs36.95 per piece up Rs0.15 or 0.41% from its previous closing of Rs36.80 per piece on the BSE.