Chandigarh MC slaps notice on sanitation firm for violation of contract

Updated on Jul 27, 2022 03:29 AM IST

The sanitation firm, Lion Services Ltd, has been asked to file reply within seven days, failing which appropriate action will be taken as per the terms of the contract and provisions of law, which includes termination of contract

According to Chandigarh MC’s notice, it was observed that the execution of the contract is not being followed in letter and spirit, which amounts to breach of contract. (HT Photo)
According to Chandigarh MC’s notice, it was observed that the execution of the contract is not being followed in letter and spirit, which amounts to breach of contract. (HT Photo)
By, Chandigarh

The municipal corporation on Tuesday issued a show-cause notice to Lion Services Ltd over violation of the contract executed for GIS-based manual and mechanised sweeping of southern sectors.

The company has been asked to file reply within seven days, failing which appropriate action will be taken as per the terms of the contract and provisions of law, which includes termination of contract.

Sanitation workers on Tuesday also staged a protest against the company in Sector 35 and suspended work, demanding action against the company.

MC commissioner Anindita Mitra directed the officials concerned to issue the notice after examining the reports submitted by the health supervisors and sanitary inspectors as well as a recent newspaper report regarding the suicide of a sanitation worker on account of non-payment of salary and various discrepancies.

“As per Clause 2.3 (p), the payment of salaries has to be made by the operator from its own funds by the seventh of every month, which has not been paid as evident from the news regarding suicide of your employee on account of non-payment of salary. Further no certificate to that extent was submitted by 10th of every month,” the notice states.

According to the notice, it was observed that the execution of the contract is not being followed in letter and spirit, which amounts to breach of contract. According to the reports, no monthly report has been submitted regarding providing ration to each Class-4 employee deployed in the project, the notice states.

Also, the operator has failed to ensure that all its workers are insured under the Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Ayushman Bharat scheme or any other insurance scheme as recommended by MC from time to time.

The MC notice further contends that no health check-up has been conducted by the operator for the workers till the end of first quarter and no report was submitted regarding it.

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