Himachal HC directs NHAI, contractor to pay ₹2.23 crore compensation for house collapse on Shimla bypass

Aug 11, 2026

Shimla (Himachal Pradesh) [India], August 11 : The Himachal Pradesh High Court has directed the National Highways Authority of India (NHAI) and private contractor M/s Gawar Shimla Highway Private Ltd. to jointly pay an interim compensation of Rs 2.23 crore to a woman whose multi-storey house collapsed during construction work on the four-lane Shimla Bypass project.
A Division Bench comprising Chief Justice G S Sandhawalia and Justice Bipin C Negi directed NHAI and the contractor to pay 50 per cent each of the assessed compensation amount of ₹2,23,55,924 to Ranjana Devi within four weeks.
The court took suo motu cognisance of the matter following a letter from neighbouring resident Chanda Devi, whose three-and-a-half-storey house at Chamyana was rendered unsafe after a massive landslide and the collapse of Ranjana Devi's adjoining structure.
The affected site falls under Package-II of the four-lane Shimla Bypass project on National Highway-5.
The compensation assessed for Ranjana Devi comprises ₹1,65,17,336 towards the value of the damaged structure and ₹58,38,588 towards belongings destroyed in the incident.
Expressing concern over the delay in payment, the court observed that despite the assessment having been completed last year, "not a penny has been paid" to the affected person. It held that NHAI and the contractor could not evade responsibility and stressed their obligation to ensure proper supervision and safety during deep hill cutting.
According to inquiry findings and police reports placed before the court, the landslide and subsequent collapse were linked to vertical slope cutting on the downhill side without adequate integrated geotechnical and hydrological management. Uncontrolled surface water runoff was also identified as a contributing factor.
An FIR has been registered at Dhalli police station in connection with the incident.
The High Court has also directed the state authorities to assess the damage to Chanda Devi's property and keep under monitoring six other adjoining houses identified as vulnerable to landslides.
The bench observed that NHAI "cannot wash off its hands of the responsibility" concerning supervision and safety measures during deep hill excavation.
The matter has been listed for further hearing on September 23.

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