VPRPL Receives Termination Notice for Bikaner Railway Station Contract; Legal Action Initiated
Vishnu Prakash R Punglia Limited received a termination notice from North Western Railway for the Bikaner Railway Station upgradation contract. The company faces potential financial implications of ₹19.95 crore, including forfeiture of a ₹19.12 crore bank guarantee and ₹0.83 crore security deposit. VPRPL has filed a writ petition in Rajasthan High Court seeking to quash the termination.
The termination of a major railway station upgradation contract and the potential forfeiture of a substantial bank guarantee and security deposit will have a significant financial impact on the company.
The company has received a termination notice for a significant contract, which is expected to have negative financial implications and has led to legal action.
Vishnu Prakash R Punglia Limited (VPRPL) has received a termination notice from North Western Railway regarding the contract for the major upgradation of Bikaner Railway Station. This contract was awarded to a Joint Venture (JV) named VPRPL - KSIPL BKN JV, in which VPRPL is a partner.
The termination notice states that the contract stands rescinded, and the balance work will be carried out independently without VPRPL's participation. The original scope of the contract involved the "Major upgradation of Bikaner Railway Station of Bikaner Division of North Western Railway (On EPC). T. No. NWR -SC-BKN -16-2023 -24-EPC, REQUEST FOR EXTENSION OF TIME AND REVISION OF MILESTONES DUE TO DELAYED HANDING OVER OF RIGHT OF WAY (ROW) AND CHANGE OF SCOPE – EPC AGREEMENT FOR REDEVELOPMENT OF BIKANER STATION".
The company received this termination notice on May 11, 2026. The expected financial implications for VPRPL are INR 199.472 million (approximately ₹19.95 crore). Additionally, the railway authority proposes to forfeit the Performance Guarantee by encashing a Bank Guarantee worth INR 191.215 million (approximately ₹19.12 crore) and a Security Deposit of INR 8.257 million (approximately ₹0.83 crore).
In response to this development, Vishnu Prakash R Punglia Limited has taken legal recourse. The company has filed a Writ Petition along with a stay application in the Rajasthan High Court, Jodhpur, seeking to quash the order of rescinding the contract and to prevent the department from encashing the Bank Guarantee.
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Vishnu Prakash R Punglia Limited filed this with the NSE as a statutory disclosure, categorised under litigation updates. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Vishnu Prakash R Punglia Limited. Read the original for the full detail.