Vishnu Prakash Contract Axed by Railways; Legal Battle Looms

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AuthorVihaan Mehta|Published at:
Vishnu Prakash Contract Axed by Railways; Legal Battle Looms
Overview

North Western Railway terminated Vishnu Prakash R Punglia Limited's contract for the Jaipur-Sawai Madhopur doubling project, encompassing earthwork, construction, and ancillary works. The infrastructure firm has filed a writ petition in the Rajasthan High Court seeking to quash the termination and protect its bank guarantee, anticipating an ₹8.87 crore financial impact from the rescinded deal.

Contract Termination Shakes Vishnu Prakash

North Western Railway has terminated a significant contract with Vishnu Prakash R Punglia Limited for works on the Jaipur-Sawai Madhopur doubling project. The infrastructure construction firm announced the termination on Wednesday, January 14, stating the railway authority rescinded the agreement. This move effectively removes Vishnu Prakash R Punglia Limited from executing the remaining portions of the crucial rail infrastructure upgrade.

Scope of Works

The terminated contract encompassed a broad range of civil engineering tasks. These included earthwork, construction of station buildings, electrical and signalling structures, platforms, bridges, passenger amenities, and other ancillary works between Jaipur and Chaksu stations. The railway's decision to terminate means the balance work will proceed without the company's involvement.

Legal Recourse Initiated

Vishnu Prakash R Punglia Limited is contesting the termination. The company has initiated legal proceedings, filing a writ petition and a stay application before the Rajasthan High Court in Jodhpur on January 14, 2026. The firm seeks to have the termination order quashed and is requesting the railway department to refrain from encashing its bank guarantee.

Financial Impact Assessed

The expected financial implication for Vishnu Prakash R Punglia Limited from this contract termination is ₹8.87 crore. This figure represents the value of the unexecuted portion of the work or other associated costs. The company's stock, Vishnu Prakash R Punglia Limited (VPRPL), saw a minor uptick, closing at ₹49.60, up 0.87% on the day of the announcement.

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