Summary: The Ministry of Road Transport and Highways (MoRTH) circular dated January 12, 2026, provides that arbitration will not be available for disputes exceeding INR 10 crore in BOT, HAM, and EPC contracts, purporting to replace existing dispute resolution clauses with immediate effect. This raises critical questions: Can a government circular unilaterally amend signed contracts that expressly require written consent for modifications? While prospective application may be defensible, retrospective substitution of dispute resolution mechanism, without mutual consent, presents serious enforceability concerns and challenges fundamental principles of contractual sanctity. The circular’s ambiguous carve-out for “ongoing arbitrations” adds further uncertainty, particularly about disputes at pre-arbitral stages. This development marks a significant departure from India’s pro-arbitration stance and warrants careful legal and policy scrutiny.Continue Reading The MoRTH Circular to end arbitration in disputes over 10 crores: Unilateral Change or Contractual Overreach?