MCG eyes ₹8.85 crore penalty over delay in Wazirabad stadium project

Officials said the contractor failed to deploy adequate manpower and machinery despite the project’s July 2026 completion deadline.

The Municipal Corporation Gurugram (MCG) has initiated action against the contractor executing the sports stadium project at Wazirabad village in Sector-52, proposing a penalty of ₹8.85 crore over massive construction delays, officials said.

Authorities said construction activity improved after the notice, but the project remains significantly behind schedule. (HT Photo)

The corporation has issued a show-cause notice to the contractor company last weekafter finding that only around 20% of the work has been completed despite a substantial portion of the project timeline having elapsed. The sports complex, being developed at an estimated cost of ₹88.50 crore, was awarded by MCG to a private contractor with a stipulated completion period of 24 months from the commencement of work. No other notices were issued before the show-cause notice, officials told HT.

According to MCG officials, the work order was issued on June 13, 2024, and the site was formally handed over to the contractor on July 17, 2024, making July 16, 2026, the scheduled completion deadline. However, during a recent inspection, officials found construction significantly behind schedule and still at an early stage.

“The pace of construction has been found highly unsatisfactory. The agency has failed to deploy adequate manpower and machinery at the site, which amounts to a violation of tender conditions,” said a senior MCG official requesting anonymity.

The contractor has been given seven days to respond to the notice. If the reply is found unsatisfactory, the corporation may proceed with recovery of damages amounting to 10% of the total project cost. The corporation’s notice also cited provisions and guidelines of the Central Vigilance Commission (CVC), under which penalties and damages can be imposed on contractors for delays in government infrastructure projects.

“Since the total cost of the Wazirabad sports stadium project stands at ₹88.50 crore, the proposed penalty works out to approximately ₹8.85 crore,” said another senior MCG official requesting anonymity.

Officials noted that following the notice issued two days ago, the contractor has increased activity at the site, and the construction pace has shown some improvement.

The proposed sports complex is expected to serve as a major sports infrastructure facility in Gurugram, offering multiple sporting amenities and training infrastructure. Civic officials said the corporation is closely monitoring the project to ensure timely completion.