Hyderabad-based Megha Engineering and Infrastructure Ltd. (MEIL) has been debarred from future bids after a collapse in slope protection works was reported on June 16, 2025, along the Chengala–Neeleshwaram section of NH-66 in Kerala. The incident at Cherkkala in Kasaragod district was attributed to poor design, inadequate slope protection, and a faulty drainage system.
The project, executed under the Hybrid Annuity Model (HAM), requires the concessionaire to maintain the highway section for 15 years. MEIL, as the promoter and concessionaire, will now be responsible for reconstructing the damaged slope protection at its own cost.
Authorities have issued a Show Cause Notice to MEIL, recommending a one-year debarment and a potential monetary penalty of up to ₹9 crore.
In response to the incident, an expert committee has been formed comprising a senior scientist from the Central Road Research Institute (CRRI), a retired professor from IIT-Palakkad, and experts from the Geological Survey of India (GSI). The committee will review the design, assess construction quality, and propose remedial measures.
The National Highways Authority of India (NHAI) has stated that all necessary steps are being taken to ensure safety and accountability in ongoing and future infrastructure projects.
In May, Maharashtra’s Mumbai Metropolitan Region Development Authority (MMRDA) scrapped the tender process for two major infrastructure projects worth Rs 14,000 crore, following intervention by the Supreme Court. The contracts had been controversially awarded to higher bidder Megha Engineering.
L&T filed a case against MMRDA in the Supreme Court last month following the rejection of their bid for two crucial infrastructure projects as part of Mumbai’s coastal road initiative. The projects included the construction of a road tunnel between Gaimukh and Fountain Hotel Junction and an elevated road along the Thane-Ghodbunder corridor.
The tunnel road project received bids from L&T, Megha Engineering and Infrastructures Ltd (MEIL), and three other companies in July 2024.
L&T’s bid was rejected during the technical evaluation stage, leading them to file a plea with the Bombay High Court for reconsideration. The plea was dismissed on May 20, 2025.
MEIL was announced as the successful bidder by MMRDA.
Following this, L&T submitted an affidavit to the Supreme Court claiming that MEIL’s bid was significantly higher by Rs 3,100 crore, yet they were chosen over L&T.
Upon review, the Supreme Court expressed astonishment at the alleged misuse of public funds by the Maharashtra government and questioned the decision to award the contract to the higher bidder.
Consequently, MMRDA decided to cancel the tender on May 30.
In 2024, Megha Engineering Company Ltd. was identified as a major contributor to political parties through electoral bonds. According to data from the Election Commission of India, Megha Engineering donated approximately 60% of the total Rs 966 crore to the Bharatiya Janata Party (BJP).
As per available data, MEIL purchased a total of 966 bonds, with the majority of 584 bonds going to the BJP. The Bharat Rashtra Samithi received 195 bonds, Dravida Munnetra Kazhagam received 85 bonds, and the YSR Congress Party received 37 bonds. Additionally, the Telugu Desam Party received 28 bonds, the INC received 18 bonds, Bihar Pradesh Janata Dal received 10 bonds, Janata Dal received five bonds, and Janasena Party received four bonds.
MEIL’s subsidiary, Evey Trans Private, acquired six bonds valued at Rs 1 crore each, all of which were allocated to the Bharat Rashtra Samithi. Furthermore, SEPC Power, another subsidiary of the company, acquired 40 bonds valued at Rs 1 crore each.