Noida Toll Bridge and Allahabad Court case
See what happened at the Noida Toll Bridge case…this I am quoting from a newspaper…I HAVE PERSONALLY NOT READ OR EVEN SEEN THE JUDGEMENT…
“The court noted in its ruling that Noida Toll Bridge had recovered Rs810.18 crore from toll income since the commencement of the expressway till 31 March 2014. Approximately Rs300 crore more was realized through user fee or toll between 1 April 2014 and 30 September 2016, the court noted. Calls made and emails sent to the Noida Toll Bridge Co. and the New Okhla Industrial Development Authority were not answered.
The court order will have implications for development for toll roads across India, an expert said. “Since Gujarat and Maharashtra have more or less abolished tolling, it is going to be very crucial for toll roads in India,” said Abhaya Agarwal, partner and PPP (public-private partnership) leader at consulting firm Ernst and Young. However, he added that “the mobility is not going to enhance substantially due to this decision because there are several congestion points on the corridor anyway like Okhla and South Extention when one takes the DND route.”
waiting for the Supreme court’s view…
Can a court decide what is a normal profit..etc.?
Do they know how the costs of an aborted bid is just debited to the Profit and Loss account?
If I take all the banks, life insurance companies, mutual funds,…etc. what will the court do?
If I have a CEO who gets a salary of Rs. 12 crores will the court term it as excessive?
Is it in the jurisdiction of the court to decide ‘normal profits’?
What would have happened if there was no traffic in this bridge?
Is it within the powers of the court to do such work – for which it has no competence?
When lenders and shareholders invest do they have to worry about such judgments?
To me all these questions are and will remain UNANSWERED…..BYE…
Kumar
http://m.firstpost.com/india/delhi-noida-toll-bridge-irregularities-should-serve-as-warning-about-perils-of-the-ppp-model-2914712.html
vivendi
Supreme court denies stay . Only in India one can be branded a criminal even if one has a perfectly legal contract. Everyone wants a free lunch, contract and investment be damned.
umang jain
I wish that people know the irregularity in Noida Tolls.
Even if this toll was allowed for another 30 years ,the so called profit would have never been made as per the company. Thank for God we still have functioning courts in India. Next to fall in line must be the 5 Mumbai entry points.
Srinivas Muthadi
Interesting… Are well maintained roads in India going to be a dream?
param
without going into whether the profits were excessive or not, whether the bidder used political connect/bribes or not, one thing that clearly emerges is that contract has no value in our country – even courts do not offer protection against mob-ocracy.
when the bid for these projects is made, it is a fixed price bid and bidder has to make long term bets with suitable assumptioms, hedge the risks appropriately and run the business as usual. no one could have predicted if the traffic would have gone up or down, whether affordability for toll would have increased or not, whether maintenance costs would go up or not, whether labor costs will go up or not. the whole idea of bringing private party is to allow them to play the risk-reward game.
if the reverse was true – that is if the usage of road was less than anticipated, would public allow the company to approach court to ask govt to fund its potential losses?