BMC fails to retrieve ₹64.60 crore penalty from contractor | Mumbai news - Hindustan Times
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BMC fails to retrieve 64.60 crore penalty from contractor

Apr 01, 2024 06:04 AM IST

The company’s ₹1,687-crore contract was terminated by civic chief and administrator Iqbal Singh Chahal on November 8 last year as it had failed to initiate concretisation work, while the fine was levied in December

Mumbai: The Brihanmumbai Municipal Corporation (BMC) has failed to recover 64.60 crore in penalties from Roadway Solutions India Infra Ltd (RSIIL), which was tasked with the concretisation of 212 roads in the island city, despite expiration of the 30-day deadline on January 25, 2024. The company’s 1,687-crore contract was terminated by civic chief and administrator Iqbal Singh Chahal on November 8 last year as it had failed to initiate concretisation work, while the fine was levied in December.

BMC fails to retrieve <span class='webrupee'>₹</span>64.60 crore penalty from contractor
BMC fails to retrieve 64.60 crore penalty from contractor

Former BJP corporator Makarand Narwekar, who wrote to the BMC emphasising on the need for accountability, said, “The BMC must recover the penalty promptly, without any delay, to deter others from similar behaviour. It must also blacklist the contractor and file a criminal complaint against it for deceiving the corporation.”

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Narwekar said that if the company was not blacklisted, it could bid for other BMC contracts, potentially leading to further exploitation of the civic body. “The citizens of Mumbai are deeply discontented with the deplorable state of roads, and the BMC must ensure decisive action to alleviate the situation, especially during the monsoon,” said the former Colaba corporator.

While the BMC has invited fresh bids afresh for concretising the 212 roads, Narwekar urged the civic body to divide the mega tender into smaller, ward-wise chunks to facilitate greater contractor involvement and expedite the completion of road works.

“The prolonged delay in road works, exacerbated by the election code of conduct prohibiting new assignments until June, will significantly inconvenience citizens, especially given the poor condition of roads,” he explained.

When Abhijit Bangar, additional municipal commissioner (projects) was asked about BMC’s failure to recover the fine, he said, “BMC is serious about recovery. The contractor’s contract deposit will be forfeited, while the bank guarantee submitted by them as earnest money deposit (EMD) for the fresh tender has not been released yet and is proposed to be forfeited. Other possible efforts for recovery will also be made.”

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