According to KRIDE, the tribunal upheld its position that L&T had defaulted on the execution of the two corridor works and subsequently ‘terminated the agreements unilaterally and illegally, not as per the terms and conditions of the contracts.’
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The Rail Infrastructure Development Company (Karnataka) Limited (KRIDE) has invoked and encashed performance bank guarantees worth ₹57 crore issued on behalf of Larsen and Toubro. This follows the Arbitration Tribunal’s decision rejecting L&T’s plea to restrain the move, KRIDE said.
KRIDE stated that the guarantees, issued by YES Bank, pertained to civil works under Corridor 2 and Corridor 4 of the Bengaluru Suburban Rail Project (BSRP). The tribunal’s decision, KRIDE claimed, allowed it to proceed with encashing the guarantees, which it completed on April 4.
Published – April 05, 2026 06:45 pm IST
