Roadstar Infra Trust’s Subsidiary Secures ₹499 Cr NHAI Settlement

The settlement resolves long-standing arbitral disputes, bolstering the liquidity and financial standing of the InvIT’s road infrastructure portfolio.

MUMBAI — Pune Sholapur Road Development Company Limited (PSRDCL), a subsidiary of the Roadstar Infra Investment Trust (RIIT), has finalized a settlement agreement with the National Highways Authority of India (NHAI). Under the terms of the agreement, the NHAI has committed to paying ₹499.09 crore to PSRDCL as a full and final settlement for outstanding contractual disputes.

The settlement, executed on July 10, 2026, was formalized under the 'Vivad Se Vishwas-III' (MoRTH Contractual Disputes) One-Time Settlement Scheme. This agreement effectively concludes years of legal contention arising from a 2017 arbitral award of ₹547.96 crore, which had been previously upheld by the Delhi High Court in 2019.

Resolving Legacy Disputes

The dispute centered on long-pending claims related to the development and operation of the Pune-Sholapur road stretch. By opting for the government’s One-Time Settlement (OTS) scheme, the subsidiary and the highway authority have opted to bypass further protracted litigation, providing a definitive resolution to the financial conflict.

Roadstar Infra Investment Trust, an infrastructure investment trust (InvIT) formed as part of the resolution framework for the IL&FS Group, holds PSRDCL as one of its six key operational road assets. The settlement is expected to improve the liquidity profile of the InvIT, which manages a diverse portfolio of road infrastructure across six Indian states.

Financial and Operational Impact

For stakeholders and investors, the infusion of ₹499.09 crore represents a significant recovery from a legacy asset. According to regulatory disclosures filed with the BSE Limited and National Stock Exchange on July 13, 2026, this move is part of the Trust’s broader efforts to streamline capital arrangements and enhance the coverage metrics of its road portfolio.

Analysts note that the resolution aligns with the Trust's acquisition philosophy of managing assets out of stress periods. Since its registration in 2020, the InvIT has focused on monetizing mature road assets to provide value recovery to creditors. With this settlement, the Trust further solidifies the financial health of its SPVs, which collectively operate over 3,145 lane kilometers.

Official Sources

According to the official announcement by Roadstar Investment Managers Limited—the investment manager for the Trust—the settlement was executed under Section 73(2) of the Arbitration and Conciliation Act, 1996. The document confirms that the payment from the National Highways Authority of India (NHAI) is intended to resolve all matters stemming from the 2017 arbitral award.

Why It Matters

This settlement is a crucial step for the infrastructure sector, demonstrating the efficacy of government-led dispute resolution schemes in unlocking capital that would otherwise remain tied up in litigation. For Roadstar Infra Investment Trust, the influx of funds strengthens the balance sheet of PSRDCL and supports the overall debt-servicing capability of the InvIT, which remains a vital component of the IL&FS group's ongoing debt resolution process.

Key Facts at a Glance

• Settlement Amount: ₹499.09 crore to be paid by NHAI to PSRDCL.

• Legal Basis: Finalized under the 'Vivad Se Vishwas-III' (MoRTH Contractual Disputes) One-Time Settlement Scheme.

• Underlying Dispute: Resolves a 2017 arbitral award of ₹547.96 crore that was upheld by the Delhi High Court.

• Strategic Impact: Enhances liquidity and supports debt servicing for the Roadstar Infra Investment Trust portfolio.

FAQ

What is the purpose of this settlement agreement?

The agreement is designed to resolve long-standing contractual and arbitral disputes between the NHAI and PSRDCL regarding a highway development project, allowing both parties to avoid further litigation.

How does this affect Roadstar Infra Investment Trust?

As the parent trust, RIIT benefits from the improved financial health of its subsidiary, PSRDCL, which helps in centralizing debt servicing and strengthening the InvIT's overall credit profile.

Is this part of a larger government scheme?

Yes, the settlement was executed under the Ministry of Road Transport and Highways' (MoRTH) 'Vivad Se Vishwas-III' One-Time Settlement Scheme, which aims to resolve contractual disputes in the highway sector.

Source: Roadstar Investment Managers Limited (NSE Filing), National Highways Authority of India (NHAI), BSE Limited, National Stock Exchange