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Punjab’s Order To Cancel E-Bus Contract Suspended by LHC

Carr.pk
Carr.pk
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Punjab’s Order To Cancel E-Bus Contract Suspended by LHC - Carr.pk

The plan to bring more electric buses to Punjab has taken a legal turn. According to DAWN, the Lahore High Court (LHC) has stepped in to stop the Punjab government from canceling a massive contract for new electric vehicles (EVs). The court’s decision comes after the government tried to end the deal unexpectedly late last month.

Court Sides with Bus Supplier

Justice Jawad Hassan of the LHC Rawalpindi bench suspended the government’s cancellation order after a petition from Universal Motors. The company argued that the government terminated the contract without providing a fair hearing or a valid reason.

The judge noted that the government’s move seemed to lack a clear legal basis. For now, the cancellation is on hold while the court investigates the matter further.

A Rs 4.5 Billion Project at Stake

This deal is a major part of Punjab’s green energy goals. The agreement, signed in May 2025, was for 100 nine-meter electric buses costing roughly Rs 4.58 billion.

The project was already moving forward before the dispute began:

  • A prototype bus was already built and approved in September 2025.
  • The company had already paid a security bond of over Rs 458 million.
  • The government had already issued an initial payment to start the work.

What This Means for Commuters

The Punjab government wants to put 500 electric buses on the road to fight smog and lower fuel costs. However, this legal battle could slow things down. If the contract remains in limbo, the delivery of these 100 buses will likely be delayed, pushing back the timeline for cleaner air in cities like Lahore.

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