G R Infraprojects Wins ₹1.06 Billion Arbitration Award Against Bihar Government
G R Infraprojects Limited has won an arbitration case against the Bihar government, entitling it to receive ₹106.45 crore plus 12% annual interest. The dispute was related to the construction of a two-lane Bhagalpur Bypass project. The arbitral tribunal's decision, announced on April 2, 2025, is expected to have no negative impact on the company's financial position. This victory demonstrates G R Infraprojects' ability to manage project-related disputes effectively.

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G R Infraprojects (GRINFRA), a prominent player in the infrastructure sector, has secured a significant legal victory against the Bihar government. An arbitral tribunal has ruled in favor of the company, entitling it to receive ₹1.06 billion (₹106.45 crore) from the state government.
Arbitration Details
The arbitration proceedings were between G R Infraprojects Limited and the Chief Engineer, NH (S) wing & Road Construction Department, Government of Bihar. The dispute stemmed from various claims raised by the company related to a specific project:
- Project: Construction of Two Lane with Paved shoulder of Bhagalpur Bypass
- Location: Km 119.885 to 132.895 (approximately 13.010 Km) (Design Chainage 124+175 to 140+850 (approx. 16.675 Km))
- Section: Bhagalpur Section of National Highway No 80 in the State of Bihar
- Contract Type: EPC (Engineering, Procurement, and Construction) mode
Tribunal's Decision
The arbitral tribunal's award, declared on April 2, 2025, and received by the company on April 3, 2025, includes the following key points:
- G R Infraprojects is entitled to receive ₹106.45 crore from the Bihar government.
- The company will also receive future interest on the awarded amount at a rate of 12.00% per annum from the date of the award until the date of realization.
Financial Impact
In its regulatory filing, G R Infraprojects stated that this arbitration award is expected to have "No Negative Impact" on the company's financial position. This suggests that the award could potentially boost the company's financial standing once the amount is realized.
Company's Response
Sudhir Mutha, Company Secretary of G R Infraprojects Limited, informed the stock exchanges about this development in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Conclusion
This arbitration victory underscores G R Infraprojects' ability to successfully navigate legal challenges and secure its financial interests in government projects. As the infrastructure sector continues to play a crucial role in India's development, such outcomes may bolster investor confidence in companies that can effectively manage project-related disputes and claims.
Investors and market watchers will likely keep a close eye on how this award impacts G R Infraprojects' future financial performance and its relationship with government entities for upcoming projects.
Historical Stock Returns for GR Infraprojects
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.04% | +1.40% | +19.80% | -32.52% | -17.87% | -37.72% |