Synopsis: Infra majors KEC International, Ashoka Buildcon, and KNR Constructions faced temporary debarments over project-specific safety and compliance issues, but legal relief, investigations, and settlements ensured limited business disruption and gradual normalisation.
NHAI has power to take disciplinary action against contractors, which includes the issuance of show-cause notices and the temporary banning of companies from participation in tenders in case execution of the project is found to be in violation of contractual terms, safety norms, or regulatory standards.
Such actions are more often than not project-specific and preventive in nature, aimed at public safety, accountability, and compliance, rather than penalising the overall business operations of a company. Let us see a few companies that faced these actions, and another company that was barred by a PSU for contract violation.
KEC International is a major infrastructure developer with operations in the construction of complex projects in the areas of power, transportation, civil works, energy, and manufacturing sectors.
It renders services in the entire process from planning and detailed engineering to execution in the field, even in challenging terrain and conditions. KEC has a significant presence in the global market, and its manufacturing operations remain focused on the core of ensuring quality and safety in the provision of infrastructure.
With a market cap of Rs 19,584 crore, the shares of KEC International Ltd. closed at Rs. 732.15 compared to its previous day’s closing price of Rs 737.85. The stock is trading at a PE of 28.7 compared to its industry PE of 18.4.
About the ban.
KEC International was barred from taking part in the Power Grid Corporation of India (PGCIL) tenders for nine months from November 18, 2025, due to an alleged violation of conditions related to an earlier case that the firm had informed exchanges about in March 2025.
Notably, this was not imposed on any projects that PGCIL has in execution. The firm clarified that it was weighing various options and that this measure does not appear to impact it significantly. The impact of this notice appears to be marginal on the business and financials of the firm.
Where is the case now?
KEC International has finally caught a bit of a break after the Delhi High Court stepped in on its dispute with Power Grid Corporation of India (PGCIL). The court has temporarily paused PGCIL’s earlier order that would have kept KEC out of tenders for nine months. In simple words, that restriction is not active right now, and PGCIL has been told to go back, review KEC’s response properly, and then take a fresh call.
What really matters on the ground is that KEC can continue bidding for projects without any interruption, including those floated by PGCIL. This is a big relief because PGCIL is an important client, and being locked out could have hurt future orders. With this clarity, KEC can keep pursuing new work and maintain business momentum instead of dealing with a sudden stop.
Ashoka Buildcon is an integrated infrastructure company, which focuses on the entire project life cycle, right from engineering to construction, including the operation of road assets. Over the years, it has maintained itself as a leading player in the development of highways in India, which has happened with the implementation of various project models such as EPC, BOT, or HAM.
As a company with experience in this sector, it remains focused on the execution of large projects with the principles of quality, safety, and environmental sustainability in their execution.
With a market cap of Rs 4,789 crore, the shares of Ashoka Buildcon Ltd closed at Rs. 170.65 compared to its previous day’s closing price of Rs. 172.60. The stock is trading at a PE of 3.14 compared to its industry PE of 18.4.
About the ban.
Ashoka Buildcon has received a show-cause notice dated November 26th, 2025, from NHAI as a follow-through on a serious incident that occurred on its NH-66 elevated corridor project. On the NH-66 elevated corridor project, two precast girders fell during construction work, resulting in a deadly accident.
It should be noted that following this incident, NHAI has temporarily barred the company from taking part in any current and prospective tenders for a period of one month or until the completion of the investigation by the expert committee, whichever is later.
Even though there have been concerns regarding the safety standards of the firm after the recent incident, Ashoka Buildcon has denied that there has been any lapse in its standards and said that the incident was sudden and unexpected.
Where is the case now?
Presently, the suspension in the NHAI bid remains, which was a temporary order in the wake of the NH-66 girder collapse. After being served a show cause notice on 26 November 2025, the NHAI suspended the suspension of the company to take part in the current and future bids for a period of one month or until the inquiry report into the incident by the expert committee.
According to the report, the cause of the incident was argued by Ashoka Buildcon to be on account of the unforeseen equipment failure rather than a safety process.
Although the inquiry is still ongoing, there has not yet been any report of an extension of the ban imposed on the firm’s operations being removed, although it continues to secure new contracts even independent of awards from NHAI, such as from the Brihanmumbai Municipal Corporation.
Further, broader audits for safety and quality have also begun for the NH-66 corridor initiated by NHAI due to certain structural worries, although this is independent of Ashoka Buildcon’s own investigation. This naturally points towards the emphasis being on construction safety at the region where the accident took place.
KNR Constructions is a publicly traded infrastructure development company that offers engineering, procurement, and construction services in several categories of infrastructure.
The company has its niche in road and highway projects, whereby it is engaged in the construction and maintenance of roads, highways, flyovers, and bridges. Besides this, the company is also engaged in irrigation and water management projects in the urban sector, thus enabling it to tap the entire significant sector of public infrastructures.
With a market cap of Rs 5,023 crore, the shares of KNR Constructions Ltd closed at Rs. 178.70 compared to its previous day’s closing price of Rs 171.25. The stock is trading at a PE of 7.29 compared to its industry PE of 18.4.
About the ban.
KNR Constructions reported to exchanges that it had received a notice from NHAI on May 21, 2025, in the wake of an occurrence in the Ramanattukara project stretch, wherein the failure of retaining and RE walls resulted in the settlement of the service roads owing to the subsoil condition and the presence of a high water table.
It also reported that NHAI had issued a show cause notice to the company and its wholly owned subsidiary and had temporarily barred the subsidiary from taking part in the bids for a period of one month or till the end of an investigation by the expert committee, whichever is later.
The company reported that it hadn’t been affected by the notice and was assessing the same as to the financial impact while taking measures to remedy the situation.
Where is the case now?
The dispute between KNR Constructions and NHAI has been settled with the signing of the settlement agreement by its wholly owned subsidiary, KNR Ramanattukara Infra Private Limited, on October 16, 2025.
Under the terms of the settlement agreement, the wholly owned subsidiary agreed to design and construct a 377 m viaduct at its own cost and within a time limit of February 28, 2026, and NHAI would extend time without claim to damages. KNR Constructions and its promoters would not submit bids to NHAI until November 30, 2025; after that, all proceedings regarding penalties/debarment were waived.
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