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The BMC in South Mumbai terminated its contract with Roadway Solutions India Infra Ltd (RSIIL) due to the contractor's 10-month delay in starting road work. RSIIL also faces a Rs 52 crore penalty. This decision came after complaints from local officials and politicians about the project's lack of progress and mismanagement.
Last week, the BMC greenlit a proposal to terminate an existing contract with Roadway Solutions India Infra Ltd (RSIIL), the cement concrete (CC) road contractor responsible for projects in South Mumbai. The decision was prompted by the contractor's glaring failure to commence work 10 months after receiving the work orders. Municipal Commissioner Iqbal Chahal confirmed the decision to the press, citing the seriousness of the situation.
Several notable politicians and public figures have advocated for the termination of the contract and for hefty penalties to be levied on the contractor to discourage such callousness in the future.
The roads department submitted a formal proposal to Commissioner Chahal seeking the termination of RSIIL's contract. After much deliberation a hearing for scheduled. However, the company sought more time, responding to the termination notice with a written justification for the delay on account of technical roadblocks.
Representatives of RSIIL were absent at hearing scheduled to discuss the fate of its contract. Therefore, a unilateral decision was taken by the department on account of the contractor’s written response. A formal termination letter is scheduled to be dispatched this week. The contractor now faces a penalty of Rs 52 crore as a consequence of its inaction, adding to the financial implications of their delay.
In conclusion, the BMC's decision to terminate the contract with RSIIL for the delayed road works in South Mumbai represents a significant development in response to long-standing issues with the project. The substantial penalty and potential blacklisting of the contractor, coupled with political figures calling for inquiries and accountability, reflect the growing concern and scrutiny surrounding this crucial infrastructure endeavour.
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