NHAI, contractor to pay Rs.2.2 crore for building collapse during 4-laning work
Shimla, Aug. 11 -- The Himachal Pradesh high court has directed the National Highways Authority of India (NHAI) and contractor Gawar Shimla Highway Private Limited to pay 50% each of the total assessed compensation of Rs.2.23 crore, within four weeks, for a building collapsed due to the four-laning of highway during the 2025 monsoon.
The bench comprising chief justice GS Sandhawalia and justice Bipin C Negi noted that in spite of the fact that the assessment was made way back in July last year, and no compensation was given to Ranjana Devi either by the Contractor or by NHAI. The order dated August 5, made available on Monday, further read, "We are of the considered opinion that NHAI and Gawar Shimla Highway Private Limited - have a Corporate Social Responsibility (CSR) to pay back to the residents of Himachal Pradesh, considering the work that they are executing and considering the profit margins they are receiving from their work originating within the State."
The high court took suo motu cognisance of the matter following a letter received by a house-owner Chanda Devi who wrote that her house was rendered unsafe following the collapse of adjoining three-storey house belonging to Ranjana Devi.
The HC also directed that the state to assess the value of Chanda Devi's house, in accordance with the procedure established, which has been rendered unsafe, by the Committee notified on June 8, 2022, by the state for assessing the damage to private land and buildings beyond the Right of Way.
Questioning NHAI's responsibility, the high court said: "We are of the considered opinion that NHAI, as such, cannot wash off its hands of the responsibility for the 4-lane highway coming up, and whether the cutting was being done in the right manner or not, under proper supervision which led to the incident of a four-storey building collapsing and disappearing in seconds," observed the division bench comprising of chief justice GS Sandhawalia and justice Bipin C. Negi.
The matter has been listed for further hearing on September 23.
The three-storey building in Shimla's Bhatta Kuffar collapsed in 2025 during the monsoon.
The additional district magistrate's report had nailed NHAI and contractor. The inquiry report of additional district magistrate pointed out that the four-lane highway is being constructed downhill side of the area of the collapsed building and during the construction of the highway, hill slope cutting had been carried out, which rendered the slope prone to failure due to vertical cutting.
The report pointed out that while reinforcement work was attempted by the company, more integrated geotechnical and hydrological approach was required.
The report of the police department had also held that the collapse was linked to ongoing construction for the four-lane highway being carried out beneath the property for NHAI by Gawar Construction. In this regard, FIR was also registered at Dhalli police station....
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