BMC is yet to recover Rs 0.65 billion fine pending for road contractor

28 May 2024 CW Team

This is the first instance in which a contractor has brought the civic body into arbitration following the termination of a contract in recent memory. In the arbitration matter, Narwekar insisted that BMC choose a special counsel. Narwekar stated that, according to the BMC order, the penalty needed to be paid within 30 days. He demanded that the BMC initiate a civil suit against the contractor for the payment of the penalty. He questioned why the BMC was delaying action and allowing the contractor to exploit the civic body. Narwekar emphasised the necessity for the civic body to take firm action against contractors, considering taxpayer funds were involved. He also mentioned that by the onset of the monsoon in June, 50% of the scheduled 397 km of cement concrete (CC) road works in the city were supposed to be completed, but only 25% of that target had been achieved. Narwekar pointed out that CM Eknath Shinde himself had instructed BMC to concrete all roads. He requested municipal commissioner Bhushan Gagrani release a status report on CC roads by June 1. Narwekar stated that out of the 2050-km network of roads in Mumbai, just over 1,200 km had been concretized. In November 2023, BMC terminated RSIIL's contract for the first time for failing to initiate work. Two months later, it awarded CC contracts for 397 km of roads in the eastern and western suburbs worth Rs 60.80 billion. Officials acknowledged that only 25% of this work had been completed. They explained that when RSIIL was awarded its contract in January 2023, 50 stretches were supposed to be ready before the last monsoon. Subsequently, 400 stretches were to be taken up from October 2023 to May 2024, and the last 450 stretches were scheduled for October 2024 to May 2025. Narwekar stated that the achievement of these deadlines could only be ascertained through a status report.

As the company dragged it into arbitration in February, former Colaba corporator Makarand Narwekar from the BJP claimed that BMC is still owed Rs 64.6 billion, which it terminated four months after it handed down a penalty of Rs 16.00 billion to be paid within 30 days for cement concrete (CC) road works in Mumbai for the second time. This is the first instance in which a contractor has brought the civic body into arbitration following the termination of a contract in recent memory. In the arbitration matter, Narwekar insisted that BMC choose a special counsel. Narwekar stated that, according to the BMC order, the penalty needed to be paid within 30 days. He demanded that the BMC initiate a civil suit against the contractor for the payment of the penalty. He questioned why the BMC was delaying action and allowing the contractor to exploit the civic body. Narwekar emphasised the necessity for the civic body to take firm action against contractors, considering taxpayer funds were involved. He also mentioned that by the onset of the monsoon in June, 50% of the scheduled 397 km of cement concrete (CC) road works in the city were supposed to be completed, but only 25% of that target had been achieved. Narwekar pointed out that CM Eknath Shinde himself had instructed BMC to concrete all roads. He requested municipal commissioner Bhushan Gagrani release a status report on CC roads by June 1. Narwekar stated that out of the 2050-km network of roads in Mumbai, just over 1,200 km had been concretized. In November 2023, BMC terminated RSIIL's contract for the first time for failing to initiate work. Two months later, it awarded CC contracts for 397 km of roads in the eastern and western suburbs worth Rs 60.80 billion. Officials acknowledged that only 25% of this work had been completed. They explained that when RSIIL was awarded its contract in January 2023, 50 stretches were supposed to be ready before the last monsoon. Subsequently, 400 stretches were to be taken up from October 2023 to May 2024, and the last 450 stretches were scheduled for October 2024 to May 2025. Narwekar stated that the achievement of these deadlines could only be ascertained through a status report.

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