Recently, the Mumbai Metropolitan Region Development Authority (MMRDA) terminated the contract with Larsen & Toubro and Scomi Engineering (LTSE) and decided to take care of the Monorail by themselves. Subsequently, their dispute reached Bombay High Court after LTSE had filed a petition in the court to forfeit the ₹200 crore bank guarantee of monorail contractor, which was acquired by MMRDA for its failure to commence phase two of the monorail corridor.
With the inception of Monorail, it was LTSE’s responsibility to take care of the rail service and accordingly, MMRDA was paying a handsome amount of money to the company for their work. Alongside, a few months ago, the company had demanded a rise in pay per ride and officials had agreed to pay the company accordingly.
However, MMRDA failed to see any improvement in the rail service.
Therefore, they decided to terminate LTSE’s contract on the basis of not fulfilling the terms of the contract to their complete extent. After which, MMRDA has also laid a claim on the ₹200 crore bank guarantee and had asked LTSE to return the bank guarantee within 15 days and the same has now led to the company filing a petition in Bombay HC.
Share
Tweet
