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NEW DELHI: The National Highways Authority of India ( NHAI ) has suggested treating arbitrators as ‘public servants’ considering that in some cases, the arbitration awards have been ‘exorbitant’.

The highways authority, which has perhaps maximum number of arbitration cases among all departments, has suggested this to the finance ministry, which has circulated a Cabinet proposal to streamline the release of 75% of arbitration award amount to private parties. The ministry, in the proposal, has suggested all government agencies to refer every arbitration award to law ministry before challenging it in any high court.

As per the law, it’s mandatory for all public servants to file declarations of their assets and liabilities and those of their spouses and dependent children. Moreover, they come under the purview of anti-corruption watchdog, central vigilance commission (CVC).

The CVC can undertake any inquiry into any transaction in which a public servant is suspected or alleged to have acted for an improper or corrupt purpose. It can also order an inquiry or investigation into any complaint of corruption, gross negligence, misconduct, recklessness, lack of integrity or other kinds of malpractices or minor misdoings on the part of a public servant.

Sources in NHAI claimed that once the arbitrators are treated as public servant, there will be greater transparency, though officials in other departments admitted that implementing NHAI’s suggestion was difficult. “You have to amend the Arbitration and Conciliation Act and that’s a long process. The arbitrators have quasi-judicial function,” said an official.

According to an internal discussion in the NHAI, the authority wants that there also be provision for “zero interest during arbitration”and the option to choose arbitrators from a master list prepared by the government or by a high court.

