Weak arbitration defence costs government billions

State agencies’ ineffective counterclaims in disputes with construction firms have resulted in losses of at least Rs 5.5 billion over five years.

Two years ago, the Sharma/Bishoi/Surya JV construction company claimed Rs 1.44 billion from the Department of Roads before an arbitration tribunal. The amount sought in the construction dispute was around Rs 100 million higher than the total contract value of the project.