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The policy-making standing committee of the civic body, the Ahmedabad Municipal Corporation (AMC), made a significant decision by approving a proposal to blacklist two companies, Jyoti InfraTech and Vande Mataram Projects Pvt Ltd, for a period of five years. This action was taken due to the companies' failure to complete seven housing projects, collectively valued at over Rs 500 crore, within the specified timeframe.
In 2019, the AMC awarded contracts to Jyoti InfraTech and Vande Mataram Projects Pvt Ltd for the construction of 6,370 houses in seven public housing projects. These projects fell under the LIG Phase-II and the Pradhan Mantri Awas Yojana. The initial agreement stated that the companies were required to complete the projects within 24 months. However, they fell significantly behind schedule, with completion rates ranging from only 10% to 60% of the work. Despite receiving multiple notices from the AMC, the companies halted the construction, citing reasons such as price hikes.
As a result of this negligence, the AMC now faces the additional burden of Rs 100 crore to recommence the projects with new contractors. The LIG Phase-II housing projects were being developed in the Sola-Thaltej TP scheme 42 and Shahwadi TP scheme 94. Vande Mataram Projects Pvt Ltd was responsible for the construction in these areas. A senior official from the AMC's housing project division stated, "The two projects, which had an estimated value of Rs 69.62 crore, were expected to be completed within 24 months. However, the contractor has now been blacklisted."
Under the Pradhan Mantri Awas Yojana, various project packages were planned to construct numerous housing units. These packages included 1,568 apartments in package 19, 1,295 apartments in package 23, 946 apartments in package 24, 1,041 apartments in package 26, and 1,520 apartments in package 27. In December 2019, the AMC had awarded five housing projects to Jyoti InfraTech company at a reduced rate of 13-15%. However, the agency failed to make significant progress and completed less than 10% of the work.
The repercussions of the companies' inability to complete these housing projects are far-reaching. Not only does it delay the provision of affordable housing to the citizens of Ahmedabad, but it also imposes a financial burden on the AMC. The decision to blacklist Jyoti InfraTech and Vande Mataram Projects Pvt Ltd serves as a stern message to other contractors, emphasizing the importance of adhering to project timelines and fulfilling contractual obligations.
Moving forward, the AMC will be tasked with identifying new contractors to undertake these projects and ensure their timely completion. It is crucial for the civic body to exercise caution and conduct thorough evaluations when awarding contracts to prevent similar incidents in the future. By learning from this experience and implementing stricter measures, the AMC can safeguard the interests of both the residents and the municipality, ensuring the successful completion of future housing initiatives.
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