The Himachal Pradesh High Court has sought an explanation from the National Highways Authority of India (NHAI) over its decision to abandon a proposed surface highway through Chhakrail, Bhattakufar and Dhalli after paying nearly Rs. 6 bn in land acquisition compensation. The court also questioned who would be responsible for the expenditure from the public exchequer. Justice Sandeep Sharma was hearing a petition filed by Vineet Sharma and other residents of Sanjauli, whose houses have reportedly suffered damage during construction of the Bhattakufar–Chalauthi tunnel. Court records showed that land had been acquired and compensation paid to affected land and house owners before the surface highway plan was abandoned. Approximately 88 families were displaced after their houses were demolished. The NHAI subsequently decided to build a twin-tube tunnel connecting Chalauthi, Sanjauli and Bhattakufar beneath a densely populated hillside in Shimla. The petitioners have sought an immediate halt to construction, alleging inadequate safety measures and risks to houses above the alignment. The court noted that several houses had developed cracks, while some residential structures had recently been declared unsafe. It also recorded reports of water emerging from both sides of the tunnel and noted that the distance between the tunnel and the surface was as little as 14 metres at locations near the cemetery and Vishal Mega Mart. The Deputy Commissioner of Shimla and NHAI officials visited the affected area and directed that blasting work be suspended. An IIT Roorkee technical team also inspected the site on October 1, while material before the court indicated that the Geological Survey of India had earlier advised against constructing a tunnel beneath a hill with hundreds of houses. NHAI counsel Shreya Chauhan informed the court that construction records had been sought by the IIT team and that work was suspended on September 18, 2026. She said work would not resume until the team submitted its report and adequate safeguards were put in place. The court directed the NHAI to file its reply and listed the matter for November 17, 2026.