Shinde government faces legal notice for failure to pay ₹1.58 crore in Davos: Report

The Maharashtra government allegedly owes a Swiss company in Davos ₹1.58 crore in hospitality and catering dues

Published on: Oct 5, 2024, 08:05:48 IST

By HT News Desk

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The Eknath Shinde-led Maharashtra government has been slapped with a legal notice by a Swiss company for alleged non-payment of ₹1.58 due for hospitality and catering during the World Economic Forum (WEF) in Davos, Switzerland, reported news agency PTI.

Maharashtra chief minister Eknath Shinde and other ministers in WEF delegation have racked up a bill of ₹1.58 crore and more in Davos (HT_PRINT)

In the notice obtained by The Indian Express, dated August 28, the contractor SKAAH GmbH has alleged that the state-run Maharashtra Industrial Development Corporation (MIDC) has not paid ₹1.58 crore to the firm.

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The notice addressed to the MIDC, the CM's office, external affairs minister Jaishankar, the WEF and others, also stated that this was the balance amount, while previously ₹3.75 crore had been paid by the MIDC.

The Swiss firm had also submitted proof, with bills of all services provided during the WEF held from January 15-19.

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MIDC CEO P Velrasu told The Indian Express, “I am not aware of any such notice. However, MIDC will check the vouchers and take necessary action. The matter based on merits will be decided at the earliest.”

State industries minister Uday Samant responded to the situation saying, “We have not overspent. It is MVA MLAs who are making these allegations… Our legal team will reply to this notice and see what the issue is.”

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The minister was referring to negative backlash from opposition parties NCP (SP) and Shiv Sena (UBT) who had pointed out the exorbitant bills that were to be paid were a sign of the government overspending on the Davos trip.

NCP (SP) MLA Rohit Pawar said, “Such insolence by the Maharashtra government could tarnish Maharashtra’s reputation at a forum like Davos, which is important for international investment and sends a wrong message to investors.”

The notice sent by the Swiss firm states that while certain services were available for a designated number of people in the delegation, the WEF team exceeded that number, despite which the company accommodated all demands.

The notice also states that the failure to make the payment has caused damage to the Swiss hospitality company's credit score and financial situation.

“This issue is impacting international relations between India and Switzerland, and prompt resolution is necessary to prevent any further disputes or conflicts that could arise from the unresolved payment,” the notice stated

The client also reportedly made several calls and mailed MIDC representatives to no avail. The Swiss firm has alleged that the MIDC deliberately ignored their duty to pay the company.

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