The Jawaharlal Nehru Port Authority (JNPA) has agreed to settle a long-running dispute with the Boskalis Smit India LLP–Jan De Nul Dredging India Pvt Ltd joint venture over unpaid dues of ₹194.64 crore for channel widening and deepening work at the port, carried out in 2019. The decision follows a conciliation process led by retired IRS officer Maya Sinha, whose report was approved by the JNPA Board on September 17.
Under the settlement, the dredging contractor will accept the certified payment of ₹194.64 crore along with accrued interest, in place of its escalated claims exceeding ₹500 crore. The conciliator also recommended releasing performance guarantees, retention money, and issuing a Taking Over Certificate (TOC) as full and final settlement.
Both sides will also withdraw all pending civil litigations, including JNPA’s 2024 civil suit before the Bombay High Court, filed after a 2020 vigilance report by the Ministry of Ports, Shipping and Waterways.
The final payment had been withheld for years following ministry directives citing a CBI enquiry, which eventually led to an FIR in June 2025. However, both the Bombay High Court and the Supreme Court rejected fraud allegations, advising resolution through arbitration. Legal experts warned that arbitration could have exposed JNPA to liabilities exceeding ₹679 crore, factoring in interest and additional claims.
Attorney General R. Venkataramani had also advised conciliation, noting that settlement could help JNPA reduce its potential liability by about ₹280 crore. “Failure to settle would expose JNPA to significant financial liability under arbitration,” the port authority’s management told its Board.
The dredging project, worth ₹1,963 crore, was awarded in 2017 after global bidding, with work completed and verified by the National Institute of Oceanography (NIO) and the NTCPWC.
The settlement proposal has now been forwarded to the Ministry of Ports, Shipping and Waterways for approval, after which payment will be released.