MCG fines contractor ₹57.5L for poor Malibu Town road work, warns of blacklist

The civic body cited delays and erosion in freshly laid roads; issued final notice after repeated reminders, directing stricter inspections and penalty recoveries.

The Municipal Corporation of Gurugram (MCG) has imposed a penalty of ₹57.5 lakh on Deswal Construction Company for substandard road work and delays in the ₹5.75 crore recarpeting project in Malibu Town, Sector 47, officials said on Monday.

The condition of the road in question. (HT Photo)

The contractor has also been served a final warning, with the threat of blacklisting if deficiencies are not addressed immediately, they added. Despite repeated attempts from HT, the contractor did not respond to requests for a comment.

The project, which includes bituminous macadam (BM) and bituminous concrete (BC) road construction, was awarded to Deswal Construction on February 4, with an 11-month deadline. However, MCG engineers said that during inspections in October, the BC layer was found eroding in several stretches, especially along Palm Road near house numbers 1 to 34, said officials.

In a notice issued by the executive engineer of Division 1B, MCG said that despite repeated reminders, the agency failed to adhere to the agreed quality and deadlines. “This is the final opportunity to rectify the said work; otherwise, the contract will be withdrawn, and the firm will be debarred from participating in future tenders,” the notice read.

MCG officials said that previous memos were sent on August 26, September 29, and October 8, highlighting the deficiencies and delays. However, the agency did not take corrective measures, prompting the civic body to impose the liquidity damage penalty equivalent to 10% of the total project cost.

MCG Commissioner Pradeep Dahiya reaffirmed the civic body’s zero-tolerance policy toward lapses in infrastructure work. “The priority is to deliver durable infrastructure to residents. Contractors compromising on quality will face strict action, including financial penalties and blacklisting,” he said.

Dahiya directed all engineering divisions to intensify field inspections and submit weekly quality reports of ongoing projects. He also instructed officials to hold contractors accountable by recovering penalties from their running bills and ensuring that repair and maintenance work is completed within specified timelines.

Officials added that the MCG will monitor the Malibu Town recarpeting work closely over the next few weeks to ensure compliance with quality standards. “Civic work must reflect the value of taxpayer money — we cannot allow negligence to erode public trust,” Dahiya said.