+
BMC is yet to recover Rs 0.65 billion fine pending for road contractor
ROADS & HIGHWAYS

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

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.

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.

Next Story
Real Estate

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Next Story
Real Estate

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

Next Story
Real Estate

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?