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Ashoka Buildcon Limited, a key infrastructure development company in India, has announced that a major project awarded to its joint venture with Aakshya Infra Projects Private Limited has been halted. This decision follows a directive from the City and Industrial Development Corporation of Maharashtra Ltd. (CIDCO), in response to a Bombay High Court order.

CIDCO Directs Project Suspension

On June 6, Ashoka Buildcon disclosed to stock exchanges that CIDCO had issued a letter dated June 5 instructing the company to cease all activities related to the awarded infrastructure project. The directive is in accordance with an order passed by the Hon’ble High Court of Bombay, which quashed the financial bid for the project.

Project Details And Scope

The suspended project was part of the Navi Mumbai Airport Influence Notified Area (NAINA) development and involved integrated infrastructure development in TPS-10 and TPS-11. Key components included the construction of roads measuring 20 metres and above, flyovers, minor bridges, vehicular and pedestrian underpasses, and allied electrical works such as street lighting.

The contract was awarded to the Ashoka Buildcon – Aakshya Infra Projects Private Limited joint venture by CIDCO through a Letter of Acceptance dated October 10, 2024. The total project value stood at ₹1,673.25 crore, excluding GST.

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Legal Action Triggers Halt

The instruction to halt project activities came after the Bombay High Court set aside the financial bid related to this contract. In compliance with the court’s order, CIDCO has formally asked the company not to carry out any further work linked to this project.

Financial Impact Under Review

Ashoka Buildcon noted that the financial and material impact of the halt is being evaluated and will be shared in due course. As of now, the company has not reported any execution milestones on the project, and no formal contract has been signed.

Share Price Performance of Ashoka Buildcon

Despite the regulatory update, Ashoka Buildcon’s share price ended 1.99% higher at ₹222 on Friday, June 6, 2025. 

Conclusion

This development marks a legal and operational pause in one of Ashoka Buildcon’s significant infrastructure contracts under the NAINA programme. The company’s future disclosures on financial impact will provide clarity on how this may influence its broader project portfolio.

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