The National Highways Authority of India (NHAI) has barred PNC Infratech from bidding for its projects for three years after major defects emerged on the Kanpur-Lucknow Expressway, also known as the Awadh Expressway.

The debarment is the maximum penalty permitted under the concession agreement. The expressway developed premature failures and slippages at several locations within weeks of opening. An investigation commissioned by NHAI and conducted by IIT Kharagpur reportedly recommended complete reconstruction of affected stretches, while a preliminary assessment identified weak, highly plastic soil as one of the factors behind the failures.

NHAI has also suspended toll collection across the entire expressway, making it the first reported instance of a full toll suspension on an expressway. PNC Infratech is required to compensate NHAI for lost toll revenue, estimated at around Rs 42 lakh per day until the corridor is fully ready.

The project was executed under the Hybrid Annuity Model, under which the concessionaire has responsibility for maintenance during the concession period. PNC Infratech has said it is evaluating legal remedies.