Mohali bus stand project: Firm in a hurry as GMADA serves termination notice

MOHALI: While the Greater Mohali Area Development Authority GMADA is working on terminating the contract of CC Company for its repeated failure in meeting deadlines for completing the Mohali bus stand project the company now seems to be in a hurry to complete the project

Updated At : 07:39 AM Jun 14, 2016 IST

The under-construction bus stand in Mohali. Tribune photo: Vicky Gharu

Akash Ghai

Tribune News Service

Mohali, June 13

While the Greater Mohali Area Development Authority (GMADA) is working on terminating the contract of C&C Company for its repeated failure in meeting deadlines for completing the Mohali bus stand project, the company now seems to be in a hurry to complete the project.

GMADA has already issued a notice regarding the termination of the contract under the PPP mode to the company, which has reportedly filed its reply.

According to sources, the case regarding the termination of the contract has been put up before the new Chief Administrator of GMADA, who joined last week.

GMADA Additional Chief Administrator Sukhjit Pal Singh said the process of the termination of the contract was under way. “After completing the formalities, the case will be sent to the state government soon,” said Sukhjit Pal Singh. The notice in question was sent to the company on three grounds — long delay in the project, failure to pay penalties of over Rs 50 crore imposed by GMADA for the delay and failure to maintain bank guarantees under the norms.

The management of the company claimed that work at the site was on and the new bus stand would be made operational by July 31.

“Almost 90 per cent of the work at the site has been completed. The new deadline will be met by all means,” claimed Om Parkash, manager of the company, at the site.

Earlier, the company had missed at least five deadlines since the inception of the project, now worth Rs 500 crores, in February 2009. The first deadline for completing the project was October 2011. After that it was extended at least five times.

Asked whether the company had paid the penalty amount for the delay in the project, a GMADA official replied in the negative.

Regarding the claim of the company that it will complete the project by July 31, the GMADA authorities they were not aware about any such claim. “What we know is that the process of the termination of the contract is in the pipeline,” said the official.