Vishnu Prakash R Punglia Moves to Rajasthan High Court Against INR 199.472 million Railway Contract Termination

Vishnu Prakash R Punglia Moves to Rajasthan High Court Against INR 199.472 million Railway Contract Termination

Vishnu Prakash R Punglia Limited just went to the Rajasthan High Court after North Western Railway sent them a termination notice for the Bikaner Railway Station Re-Development Project. The Company shared this update with the Stock Exchanges, following Regulation 30 of the SEBI Regulations, 2015.

They got the Notice on May 11, 2026, tried to contract with their Joint Venture VPRPL-KSIPL BKN JV. This project was supposed to cover a major overhaul of Bikaner Railway Station, basically a full upgrade on an EPC basis. Northwestern Railway decided to cancel the contract and said they’d finish the rest of the work without the company’s involvement.

The company said the whole dispute started because of delays in handing over the Right of Way and changes to the project’s original scope. They put the potential financial hit from this termination at about Rs 199.47 million. On top of that, the railway authority wants to forfeit the performance guarantee and security deposit, also around Rs 199.47 million, and cash out the bank guarantee.

Now, Vishnu Prakash R Punglia Limited has filed a writ petition and a stay application with the Rajasthan High Court in Jodhpur. They’re asking the court to cancel the termination order and stop the bank guarantee from being encashed.