Dispute Redressal Mechanism in Road Sector

(Note: As a frequent visitor to India, I can affirm that this sector is in dire need of accountability, as the same roads are often being repaved almost yearly. The fact that you need this specialized dispute settlement mechanism should speak volumes about the industry)

The Union Government has an effective dispute redressal mechanism for resolving the problems with regard to the road sector.

Under the settlement mechanism, the disputes are referred to a Dispute Review Board (DRB) comprising three Members (one each to be appointed by the Employer & Contractor and a third independent party). If any party is aggrieved with the recommendations of DRB, the disputes can be referred to an Arbitral Tribunal comprising three Members (one each to be appointed by the Employer & Contractor while a third is an independent party). If aggrieved by the Arbitral Award, the aggrieved party can take recourse to move to Court of Law.  The same scenario applies for Public Private Partnerships.

Apart from Dispute Resolution Mechanism provided in the agreement of National Highways contracts, PMO has constituted B.K. Chaturvedi Committee for faster resolution of disputes pending for National Highways Development Project (NHDP) works. An Independent Expert Group (IEG) has been constituted comprising former Chief Justice of High Court as Head and former Deputy C&AG, former Vigilance Commissioner & former DG(RD) & SS, MoRTH as Members of IEG.

PIB 23JUL12

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