Local Press Co 5-point Snippet
1. The Brihanmumbai Municipal Corporation (BMC) is set to pay Rs 324 crore to the six road contractors who had come under the scanner last month for their substandard work.
2. Earlier, the BMC had initiated a probe to check the quality of the repair work and found that six contractors had done a poor job. As a result, the civic body had filed a complaint against the contractors and said that it would recover the entire cost of their respective projects, totalling to Rs 352 crore, from the contractors.
3. However, according to a Hindustan Times report, it has now decided to clear their entire payment and just withhold just Rs 28 crore on ‘technical’ grounds.
4. The BMC had earlier claimed that it had suffered losses of Rs 14 crore because of the shoddy repair work. However, while filing the complaint, it only claimed a loss of Rs 11 crore. Sources also claim that the contractors are putting pressure on the civic body by threatening to delay the repair work if their payments are not cleared.
5. Keeping a loss of Rs 14 crore in mind, the civic body simply decided to withhold twice of that as a safeguard. However, it is not willing to divulge why it decided to release the remaining Rs 324 crore while the police investigation is still underway.Back to latest news