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.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

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
Infrastructure Transport

Maersk and Hapag-Lloyd Remain Cautious About Red Sea Operations

Global shipping leaders Maersk and Hapag-Lloyd have stated they do not plan an immediate return to the Red Sea, despite the ceasefire between Hamas and Israel. Both companies emphasized they are monitoring developments to assess safety before resuming operations.Hapag-Lloyd noted that while a ceasefire is in place, risks from Yemen-based Houthi militants remain, with previous warnings suggesting that re-establishing routes through the region could take four to six weeks. Maersk echoed similar sentiments, stating it is ""too early to speculate about timing."Middle East disruptions have forced v..

Next Story
Infrastructure Transport

Mumbai Airport Records 6.3% Growth in Passenger Traffic in 2024

Mumbai International Airport Ltd (MIAL) reported a 6.3 percent rise in passenger traffic, reaching 5.48 crore in 2024, compared to 5.16 crore in 2023. The airport also recorded 3,46,617 air traffic movements (ATMs), marking a 3.2 per cent increase over the previous year.December emerged as the busiest month, with 50.5 lakh passengers, showing a 3.4 per cent growth. The airport handled its highest single-day passenger movement on December 21, with 1.7 lakh travellers—1,16,982 domestic and 52,800 international.Additionally, Chhatrapati Shivaji Maharaj International Airport (CSMIA) achieved a r..

Next Story
Infrastructure Energy

GreenLine and Mondelez Launch LNG Trucks for Sustainable Logistics

GreenLine Mobility Solutions Ltd, part of Essar's Green Mobility initiative, has joined forces with Mondelez International (India) to introduce LNG-powered trucks for sustainable product transportation. This collaboration, launched at Mondelez's Alwar facility in Rajasthan, aligns with the company's sustainability goals and ESG commitments, aiming to cut carbon emissions and enhance supply chain efficiency.GreenLine's LNG trucks, which have already reduced 8,519 tonnes of carbon emissions, provide a cleaner alternative to diesel vehicles by significantly lowering greenhouse gas emissions. Anan..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000