Karnataka HC Rejects Rs 3,000 Cr Bridge Claim, Saves State Govt
HC Rejects Rs 3000 Crore Bridge Compensation Claim

In a landmark ruling that brings significant financial relief to the Karnataka government, the Dharwad bench of the Karnataka High Court has decisively rejected a staggering Rs 3,000 crore compensation claim filed by a Hyderabad-based contractor. The case, which revolved around a failed suspension bridge project near the UNESCO World Heritage Site of Hampi, concluded on December 19 after a protracted legal battle spanning over 16 years.

A Bridge Marred by Tragedy and Delay

The origins of this complex legal dispute date back to 1997. The Public Works Department (PWD) had awarded a contract worth Rs 7 crore to BV Reddy and Company for constructing a 226-metre-long suspension bridge near Talawara Ghatta in Gangavati taluk. The project's primary aim was to boost tourism connectivity between the historic sites of Hampi and Anegundi.

However, work was abruptly halted in 1999 after UNESCO raised serious concerns that the construction would adversely impact the heritage environment of Hampi. Although permission was eventually granted in 2005, the project met with a catastrophic end. On January 22, 2009, during a concrete pouring operation, the under-construction bridge collapsed. The tragic incident resulted in the death of eight workers and left 41 others injured.

The Long Road Through the Courts

In the aftermath of the collapse, BV Reddy and Company initiated legal proceedings against the state government in the same year, 2009. The contractor argued that it suffered immense financial losses due to the PWD's failures and the prolonged delays. The case journeyed through multiple judicial forums:

  • It was first filed in the Gangavathi court.
  • It then moved to the Ballari commercial court.
  • Finally, it reached the Koppal district court.

In a shocking turn of events in 2021, the Koppal district court ordered the state government to pay a monumental Rs 3,000 crore in compensation to the contractor. This order sent alarm bells ringing within the state administration.

High Court Intervention and Final Verdict

Alarmed by the massive liability, PWD officials promptly appealed the district court's verdict in the High Court. A division bench comprising Justices Geeta Kadaba Bharataraj Shetty and SG Pandit heard the appeal at the Dharwad bench.

The bench scrutinized the case and found critical lapses in the state's earlier defense. According to sources, officials from the concerned departments had failed to appear for hearings and did not submit appropriate documents, leading to the adverse order from the lower court.

Overturning the Koppal court's decision, the High Court bench quashed the Rs 3,000 crore compensation verdict. Instead, it directed the government to pay the contractor a revised amount of Rs 5.6 crore, along with applicable interest. This ruling, coming after a 16-year legal ordeal, has allowed the state government to finally heave a sigh of relief, averting a colossal financial burden.

The judgment underscores the importance of diligent representation by government counsel in legal matters and brings closure to a long-standing dispute that intertwined development ambitions, heritage conservation, and tragic human loss.