According to KRIDE, the tribunal upheld its position that L&T had defaulted on the execution of the two corridor works and subsequently ‘terminated the agreements unilaterally and illegally, not as per the terms and conditions of the contracts.’

According to KRIDE, the tribunal upheld its position that L&T had defaulted on the execution of the two corridor works and subsequently ‘terminated the agreements unilaterally and illegally, not as per the terms and conditions of the contracts.’
| Photo Credit: File Photo

The Rail Infrastructure Development Company (Karnataka) Limited (KRIDE) has invoked and encashed performance bank guarantees worth ₹57 crore issued on behalf of Larsen and Toubro. This follows the Arbitration Tribunal’s decision rejecting L&T’s plea to restrain the move, KRIDE said.

KRIDE stated that the guarantees, issued by YES Bank, pertained to civil works under Corridor 2 and Corridor 4 of the Bengaluru Suburban Rail Project (BSRP). The tribunal’s decision, KRIDE claimed, allowed it to proceed with encashing the guarantees, which it completed on April 4.  


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