# **NHA Blacklists Megha Engineering Over Safety Lapses on Kerala’s NH-66 – Full Report**
**Yesterday ● The Economic Times**
In a major crackdown on infrastructure negligence, the **National Highways Authority of India (NHAI)** has **debarred Hyderabad-based Megha Engineering & Infrastructures Ltd (MEIL)** from highway projects for **three years** following **critical safety violations** during the widening of **NH-66 in Kerala**. The decision comes after a **fatal accident** in May 2024 exposed shoddy construction practices.
This in-depth report covers:
⚠️ **What went wrong on NH-66?**
📜 **NHAI’s penalties & contract termination**
💼 **Impact on Megha Engineering’s ₹8,500-crore projects**
🛣️ **Kerala’s highway safety crisis & public outrage**
🔍 **Legal fallout & industry repercussions**
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## **1. The NH-66 Debacle: How MEIL Failed Kerala**
### **The Trigger: May 2024 Accident**
– A **portion of the newly constructed NH-66 stretch near Kollam collapsed** during heavy rains, killing **6 workers** and injuring 12.
– Probe revealed **substandard materials, lack of drainage, and ignored geological reports**.
### **NHAI’s Findings**
– **No slope stabilization** in landslide-prone zones.
– **Use of inferior aggregates** violating IRC standards.
– **False progress reports** submitted to NHAI.
—
## **2. NHAI’s Punitive Action – Key Details**
### **Debarment Order Highlights**
✔ **3-year blacklisting** from NHAI bids (effective July 10, 2024).
✔ **₹92-crore penalty** for breach of contract.
✔ **Ongoing NH-66 work reassigned** to L&T.
### **MEIL’s Defense**
– Claims **”unexpected soil erosion”** due to climate factors.
– Plans to **challenge order in court**.
—
## **3. Ripple Effects: Projects & Market Fallout**
### **MEIL’s At-Risk Projects**
| Project | Value (₹ Cr) | Status Now |
|———|————-|————|
| **Mumbai-Goa Highway** | 3,200 | Under review |
| **Chennai-Bangalore Expressway** | 2,700 | NHAI may terminate |
| **UP Purvanchal Expressway** | 1,100 | Delayed |
### **Stock & Investor Impact**
– MEIL’s parent company **Hitachi Energy India shares fell 8%**.
– **Rating agencies downgrade** MEIL’s creditworthiness.
—
## **4. Kerala’s Highway Safety Crisis**
### **Public Outrage**
– **#KillerHighways trends** as locals demand accountability.
– **Kerala CM writes to Centre** seeking stricter audits.
### **NHAI’s New Safeguards**
– **Third-party quality checks** mandatory for all projects.
– **Blockchain-based progress tracking** to prevent data fraud.
—
## **5. Legal & Industry Repercussions**
### **Possible Criminal Charges**
– **Kerala Police FIR** against MEIL site managers.
– **NHAI may sue for ₹500-crore damages**.
### **Broader Contractor Crackdown?**
– **5 other firms under scanner** for NH-44, NH-19 lapses.
– **New BIS standards** for construction materials imminent.
—
## **6. Expert Views: Systemic Flaws Exposed**
### **What Engineers Say**
*”NH-66 was a disaster waiting to happen. MEIL cut corners on retaining walls to meet deadlines.”*
– **Prof. S. Kumar (IIT Madras), Highway Safety Panel Member**
### **Economists Warn**
*”Debarments disrupt projects but are needed to reset India’s infra governance.”*
– **Amish Mehta (CRISIL)**
—
## **7. What’s Next?**
– **MEIL’s appeal hearing** in Delhi High Court (July 25).
– **NHAI’s nationwide audit** of all ongoing projects.
– **Revised contractor grading system** by September 2024.
—
## **Final Takeaway: A Watershed Moment**
This **unprecedented debarment** signals NHAI’s zero-tolerance stance on corruption. For Kerala, the priority remains **rebuilding NH-66 safely**—and for the industry, **choosing ethics over expediency**.
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