High Court holds NHAI, contractor responsible for collapse linked to highway work
The Himachal Pradesh High Court has ordered the National Highways Authority of India (NHAI) and the contractor of the Shimla four-lane highway project to pay ₹2.23 crore to Ranjana Devi, whose four-storey house at Chamiana, Shimla, collapsed during construction, a Division Bench said on Monday.
The Division Bench, comprising Chief Justice Gurmeet Singh Sandhawalia and Justice Bipin Chander Negi, was hearing a public interest litigation concerning the safety of residential structures affected by the highway works. The court referred to inquiry reports that attributed the failure to a combination of hill-slope cutting during construction and local geological and hydrological conditions, and observed that the highway alignment lay downhill of the damaged building.
The bench noted that despite a damage assessment being completed in July 2025, no compensation had been paid to Ms Devi. It directed NHAI and the contractor to deposit 50 per cent each of the assessed amount within four weeks, until further orders.
“NHAI cannot wash off its hands of responsibility arising from the highway project,” the court said.
Court asks state to assess other unsafe structures
In addition to the payment direction, the High Court instructed state authorities to assess the value of another house — identified in court records as belonging to Chanda Devi — which the bench found had been rendered unsafe. The assessment was to follow the established procedure for evaluating damage to private land and buildings beyond the Right of Way.
- The court found slope cutting associated with construction increased vulnerability to slope failure.
- NHAI and the contractor were held jointly responsible to share the assessed payment equally.
- State agencies were directed to conduct formal valuation of other affected structures.
The bench also observed that beyond legal liability, NHAI and the contractor had a Corporate Social Responsibility (CSR) towards Himachal residents, especially given the project's execution within the State. The matter has been listed for further consideration on September 23.
What the order means for Shimla residents
The direction underlines judicial scrutiny of large infrastructure projects in hilly terrain where earthworks can destabilise slopes. For residents living along the alignment of the four-lane highway, the order signals that courts expect project authorities and contractors to bear responsibility where construction activities cause structural damage.
Practically, the order requires a significant, time-bound payout to an affected household and compels state agencies to assess other damaged properties. It may also prompt closer monitoring of ongoing works and additional assessments of at-risk structures in Shimla.
| Item | Detail |
|---|---|
| Amount directed | ₹2.23 crore (to Ranjana Devi) |
| Payment split | 50% by NHAI and 50% by the contractor |
| Timeline for payment | Four weeks (until further orders) |
| Next hearing | 23 September |
The order does not quantify compensation for other affected households; the court directed the state to follow prescribed procedures for assessing damage to private land and buildings that lie beyond the road's Right of Way. The case arises amid wider public concern in Himachal Pradesh over the environmental and safety impacts of road widening and four-laning projects through fragile hill terrain.
By assigning responsibility to both the implementing agency and the contractor, the bench emphasised that administrative approvals and contractual execution cannot absolve project authorities of consequences that affect local communities.
