NHAI Cracks Down On PNC Infratech After Expressway Defects; Shares End Over 5% Lower

The National Highways Authority of India (NHAI) has taken strict action against PNC Infratech after serious deficiencies emerged on the 63-km Kanpur-Lucknow Expressway just 13 days after it opened. Toll collection has been suspended until all defects are rectified, with traffic diverted after a nearly 300-metre slippage. NHAI has proposed declaring PNC Infratech a 'non-performer', which could affect its eligibility for future highway projects, along with a 2% penalty on its performance security and possible debarment of responsible officials for up to three years. PNC Infratech shares closed over 5% lower following the development. In a stock exchange filing, the company said the damage was caused by exceptionally heavy rainfall, repairs are underway, and clarified that it has neither been officially declared a non-performer nor finally debarred by NHAI.