**NHAI Blacklists Megha Engineering Over Safety Lapses on Kerala’s NH-66 – Full Report** 

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# **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** 



## **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**. 

**📌 Follow @EconomicTimes for real-time updates.** 

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**Word Count: 1000+** 

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