Shares of Gammon India fell over 17 per cent in Monday morning trade on the Bombay Stock Exchange following an accident at Delhi Metro at a stretch for which the company was the contractor.
The mishap may prove to be a big blow to Gammon's goodwill with the company facing possible action.
Top bosses of Gammon are in talks with Delhi Metro Rail Corporation (DMRC) officials, who are assessing the situation following Sunday's accident.
In a worst-case scenario, Gammon may be blacklisted from bidding in Metro and other projects.
Besides, there could be a surge in scrutiny by other firms for other projects engaging Gammon.
The collapse of a part of an underconstruction Delhi Metro line on Sunday was the second accident involving Gammon India, the construction company, in as many years.
Two people were killed and several injured when eight pre-cast blocks caved in at the flyover on Panjagutta in the heart of Hyderabad due to heavy rains on September 9, 2007. The flyover was being constructed by Gammon India.
How these cases are treated:
- Companies are charged penalties depending on the case
- Last time in the Hyderabad case, Gammon was charged 10 per cent penalty
- Damages on the project estimated to be Rs 10-15 cr for Gammon
