Megha Engineering and Infrastructures Ltd (MEIL) – the second largest buyer of the now struck down electoral bonds – has been debarred from participating in future National Highways Authority of India (NHAI) tenders, following a major construction failure on National Highway 66 in Kerala. The company is considered a frontrunner in multiple central infrastructure projects – from roads and bridges to metro systems and defence production.
The action stems from the collapse of slope protection works on the Chengala-Neeleshwaram stretch in Kasaragod district on June 16, 2025. An NHAI investigation blamed improper design, inadequate slope stabilization, and poor drainage systems. MEIL, the concessionaire under the Hybrid Annuity Model, has not only been blacklisted but also faced a show cause notice for a one-year debarment and a penalty of up to Rs 9 crore. The company must now reconstruct the failed stretch at its own cost and continue maintaining the road for the next 15 years under its contract.
This development comes just weeks after another serious failure on the same highway, on the Ramanattukara–Valanchery stretch, where a reinforced soil wall collapsed due to faulty foundation work. The fallout from that incident led to the suspension of a senior regional officer of the NHAI.
Union Minister for Road Transport and Highways Nitin Gadkari green light to NHAI’s disciplinary action against the company signals a crackdown. A senior official told Business Today, “the government is committed to provide quality and safe infrastructure, we are working to raise road quality standards. Failures will not be tolerated, and there is no immunity from accountability.”
The Prime Minister’s Office (PMO) is understood to have recently told Ministry of Road Transport and Highways to improve highway quality, particularly with the onset of the monsoon. NHAI Chairman Santosh Kumar Yadav visited several affected stretches in Kerala in early June, later directing contractors to prioritize drainage, erosion control, and proper alignment to prevent future road collapses.
Meanwhile, MEIL’s troubles aren’t limited to central contracts. In Maharashtra, Olectra Greentech Ltd, the group’s electric mobility arm, faced a threat of contract termination over alleged lapses in a Rs 10,000 crore electric bus tender. The episode culminated in the resignation of Olectra’s CMD K.V Pradeep.
According to data from the Election Commission, MEIL had purchased Rs 966 crore worth of electoral bonds between 2019-23. Of this, the unlisted firm donated the highest amount of about Rs 585 crore to the ruling BJP, followed by Rs 195 crore to the Bharat Rashtra Samithi, Rs 85 crore to the DMK, Rs 37 crore to the Jagan Mohan Reddy-led YSR Congress Party, Rs 25 crore to the TDP and Rs 17 crore to the Congress.
Last year, the CBI had also filed a case against the Hyderabad-based company over allegations of bribery in connection with works related to Jagdalpur integrated steel plant.
Queries to the company remained unanswered.
