Mumbai: A day after the termination of Road Solutions India Infra Ltd (RSIIL), a contracting firm that failed to commence any work on the CC road in the City area of Mumbai after receiving a work order in January 2023, BMC Commissioner Iqbal Singh Chahal assured on Thursday that BMC will issue new tenders and work orders to new contractors within the next three weeks to avoid further delays.
Penalty of Rs 52 crore on contractor
On the occasion of Diwali, BMC Commissioner Iqbal Singh Chahal held a formal meeting with media persons on Thursday. During the meeting, when asked about the cancellation of the contract, he said, "The contractor had not started work even after the work order was issued to him in January 2023. We appointed a committee under the chairmanship of the Chief Engineer of the Roads department to inquire about the delay. The committee summoned him for a hearing last week, but he did not attend any hearing. Therefore, his contract has been cancelled. We have forfeited his earnest money, levied a penalty of Rs 52 crore on him, and terminated the contract."
When Chahal was asked about the possibility of the termination of an old contractor and the appointment of a new one causing further delays in commencing the CC road work, he said, "We will invite new and short-term tenders, and within three weeks, a new contractor will be selected, and a new work order will be issued to avoid further delays."
Meanwhile, the RSIIL contracting firm has challenged its termination by BMC in the Bombay High Court and sought a stay on the termination. BMC advocate Joel Carlos opposed the stay order. The bench comprising Chief Justice DK Upadhyaya and Justice Arif Doctor refused to grant a stay order and scheduled a hearing for November 28.
BMC Commissioner signed and allowed the removal of RSIIL contractor on Wednesday after receiving suggestions from the road department committee. A penalty of Rs 52 crore has also been levied on the contractor. According to the BMC officer, the reasons provided by the contracting firm were technical and failed to justify the delay in commencing work.