Ashoka Buildcon Faces NHAI Suspension Following Fatal Girder Collapse

2 min read     Updated on 27 Nov 2025, 07:12 PM
scanx
Reviewed by
Radhika SScanX News Team
Overview

Ashoka Buildcon received a Show Cause Notice from NHAI following a tragic incident during the construction of a six-lane Elevated Corridor on NH-66. Two precast PSC girders collapsed, resulting in one fatality. NHAI suspended Ashoka Buildcon from participating in ongoing and future bids for one month or until the completion of an Expert Committee investigation. The company denies endangering public safety, attributing the incident to a sudden hydraulic jack failure and unauthorized vehicle entry into the construction zone. Ashoka Buildcon is assessing the financial impact and maintains that all other operations remain unaffected.

25796540

*this image is generated using AI for illustrative purposes only.

Ashoka Buildcon Limited , a prominent infrastructure development company, has encountered a significant setback in its operations following a tragic incident during the construction of a six-lane Elevated Corridor on National Highway 66 (NH-66).

NHAI Issues Show Cause Notice

The National Highways Authority of India (NHAI) has issued a Show Cause Notice (SCN) to Ashoka Buildcon on November 26, 2025, regarding a severe incident that occurred during the construction of the six-lane Elevated Corridor from Aroor to Thuravoor Thekku section of NH-66 (Km 366.330 to Km 379.082).

Incident Details

The incident involved the collapse of two precast Prestressed Concrete (PSC) girders, with one falling onto a commercial vehicle, resulting in the fatality of the driver. This unfortunate event has raised concerns about public safety and construction practices.

Temporary Suspension

As a consequence of this incident, NHAI has taken the following actions:

Action Details
Suspension Period One (01) month or until completion of Expert Committee investigation, whichever is later
Scope of Suspension Participation in ongoing and future NHAI bids

Company's Response

Ashoka Buildcon has respectfully denied the allegation that public safety was endangered. The company maintains that the incident resulted from sudden and unforeseeable circumstances, not attributable to any lapse in their safety practices.

The company has presented the following key points in its defense:

  1. The incident was triggered by a sudden and unpredictable failure of a hydraulic jack due to internal seal damages.
  2. The girder fell on a moving goods carrier vehicle that had forcibly entered a prohibited construction zone.
  3. The company asserts that it has consistently implemented and maintained all safety precautions and protocols in line with Good Industrial Practices, contractual requirements, and applicable codes and safety measures.

Financial Impact

Ashoka Buildcon is currently in the process of ascertaining the financial impact of this incident and suspension. The company has stated that it will intimate the stock exchanges in due course of time. All other operations of the company remain unaffected.

Regulatory Compliance

The company has affirmed its commitment to following all rules, regulations, and standards prescribed by regulatory authorities and will continue to do so.

This incident serves as a reminder of the critical importance of safety measures in infrastructure projects and the potential consequences of unforeseen events in construction sites. As the investigation unfolds, it remains to be seen how this will impact Ashoka Buildcon's future operations and its standing with NHAI.

Historical Stock Returns for Ashoka Buildcon

1 Day5 Days1 Month6 Months1 Year5 Years
-2.22%-4.58%-19.86%-23.02%-33.19%+111.17%
Ashoka Buildcon
View in Depthredirect
like17
dislike

Ashoka Buildcon's Subsidiary Completes Rs 1,814.42 Crore Sale of Highway SPVs

1 min read     Updated on 26 Nov 2025, 06:48 PM
scanx
Reviewed by
Riya DScanX News Team
Overview

Ashoka Concessions Limited (ACL), a material subsidiary of Ashoka Buildcon Limited (ABL), has completed the sale of its entire stake in five highway special purpose vehicles (SPVs) to Maple Infrastructure Trust. The transaction, valued at Rs 1,814.42 crores, was completed on November 26, 2025. The five SPVs sold include Ashoka Highways (Bhandara) Limited, Ashoka Highways (Durg) Limited, Ashoka Belgaum Dharwad Tollway Limited, Ashoka Sambalpur Baragarh Tollway Limited, and Ashoka Dhankuni Kharagpur Tollway Limited. These SPVs contributed approximately 5.36% to ABL's total turnover in FY2024-25.

25708710

*this image is generated using AI for illustrative purposes only.

Ashoka Buildcon Limited (ABL) has announced a significant corporate action involving its material subsidiary, Ashoka Concessions Limited (ACL). On November 26, 2025, ACL completed the sale of its entire stake in five highway special purpose vehicles (SPVs) to Maple Infrastructure Trust. This transaction marks a notable development in the infrastructure sector.

Transaction Details

The sale transaction, which was executed for an aggregate consideration of Rs 1,814.42 crores, involves the following key aspects:

Aspect Details
Seller Ashoka Concessions Limited (ACL)
Buyer Maple Infrastructure Trust
Number of SPVs Sold 5
Total Consideration Rs 1,814.42 crores
Completion Date November 26, 2025

Impact on Ashoka Buildcon's Financials

The sale of these SPVs is expected to have a notable impact on Ashoka Buildcon's financial position:

Financial Aspect Impact
Turnover Contribution Approximately 5.36% of total turnover in FY2024-25

SPVs Involved in the Transaction

The five highway SPVs included in this sale are:

  1. Ashoka Highways (Bhandara) Limited
  2. Ashoka Highways (Durg) Limited
  3. Ashoka Belgaum Dharwad Tollway Limited
  4. Ashoka Sambalpur Baragarh Tollway Limited
  5. Ashoka Dhankuni Kharagpur Tollway Limited

Strategic Implications

This divestment by Ashoka Concessions Limited suggests a strategic move by Ashoka Buildcon to potentially streamline its portfolio or reallocate resources. The sale to Maple Infrastructure Trust, a SEBI-registered infrastructure investment trust, indicates ongoing consolidation and investment interest in India's highway infrastructure sector.

Conclusion

The completion of this significant transaction underscores the dynamic nature of India's infrastructure sector. It reflects the ongoing trend of asset monetization in the highway sector and may signal Ashoka Buildcon's strategy to focus on core operations or explore new growth opportunities. Investors and market watchers will likely be keen to observe how Ashoka Buildcon utilizes the proceeds from this sale and its impact on the company's future financial performance and strategic direction.

Historical Stock Returns for Ashoka Buildcon

1 Day5 Days1 Month6 Months1 Year5 Years
-2.22%-4.58%-19.86%-23.02%-33.19%+111.17%
Ashoka Buildcon
View in Depthredirect
like15
dislike
More News on Ashoka Buildcon
Explore Other Articles
169.57
-3.85
(-2.22%)