HC stays coercive action against Ggm waste company fired by municipality

The contract was an agreement signed between MCG and Ecogreen Energy on August 14, 2017 to develop an integrated waste management system

The Punjab and Haryana high court on Wednesday stayed an order by the Municipal Corporation of Gurugram (MCG), seeking coercive action against solid waste management concessionaire Ecogreen Energy.

The skyline of Gurugram. (HT File)

The contract in question was an agreement signed between MCG and Ecogreen Energy on August 14, 2017 to develop an integrated waste management system (collection, transportation, processing and disposal) in the Faridabad-Gurugram cluster.

However, the civic body on June 14 decided to terminate the contract, citing consistent underperformance, inadequate waste collection, and non-compliance with the contractual terms, following which the concessionaire moved court.

In its petition filed in the high court, Ecogreen Energy alleged that the notice was served with “malafide and ulterior motives, in derogation to the agreement as grounds mentioned in the termination notice were “perfunctory illegal, concocted and away from the ground reality”. The company also highlighted logistical challenges and delays beyond their control, such as infrastructure issues and weather conditions, have hampered their operations.

During the hearing, the court directed that no coercive action be taken against the firm, emphasising the importance of uninterrupted waste management services for public health, and directed both sides to present detailed evidence and arguments in the upcoming hearing scheduled on July 4.

After the hearing, Ecogreen Energy, in an official statement, said that it had to deal with a “mafia”, which collected the waste, hampering the company’s operations.

“Now, we are ready to turn around the situation with the help of the government and MCG. If need be, we can work 20 hours a day to clear the solid waste stuck inside the city since the last five days,” Ecogreen Energy COO Nagarjuna Reddy said.

Meanwhile, MCG commissioner Narhari Singh Bangar said the court has stayed only coercive action till the next date of hearing. “There is no stay on the contract but on recoveries and penalties. We have taken over the plant from them and have already engaged other agencies to carry out door-to-door waste collection. New waste collection vehicles have been rolled out on Wednesday. The process has already been initiated as per the termination,” he said.