The fear of a Rs120-crore claim from Reliance Infrastructure is forcing the Maharashtra State Road Development Corporation (MSRDC) to explore legal options before it cancels its contract with the company for building the Worli-Haji Ali sea link.
The MSRDC board, which met on Friday, has deferred its decision to cancel the sea link contract to study legal recourses and find an amicable solution with Reliance Infrastructure so that it won’t have to pay the company any money.
“The issue of cancellation of Worli-Haji Ali sea link contract was there in the agenda of today’s board meeting, but we have deferred the subject for a later date,” commented Sonia Sethi, joint managing director of MSRDC.
MSRDC officials claim the deferment is also to ensure the body does not face a law suit from R Infra for arbitrarily cancelling the contract.
“The final decision will be taken in the next board meeting which could be as early as next week,” a senior MSRDC official said.
Reliance Infrastructure has paid Rs100 crore to MSRDC as security deposit after bagging the contract. This will be returned to the company if the contract gets cancelled. It has spent Rs120 crore in the last two years over the sea link.
Reliance has paid Rs 64 crore to French design consultant Systra for designing the project. The agency has worked on projects like construction of the Chunnel which connects the UK and France by rail.
It further claims to have spent an additional Rs 60 crore for planning the sea link.