The Belagavi City Corporation is taking legal action against a private construction firm due to significant delays in project completion.
Ashok Dudgunti, the Corporation Commissioner, has issued a formal notice to L&T Limited, instructing their officers to pay a penalty of ₹21 crore for breaching contractual obligations related to providing drinking water to the city.
Under the agreement, the company had entered into a Design, Build, Operate, and Transfer (DBOT) contract with the city corporation to oversee the water supply project.
During a recent meeting, corporation members expressed concerns about the slow progress of the water supply project. Field inspections conducted by officials confirmed that the overall progress stood at a mere 30%, with physical accomplishments reaching approximately 36% for bulk components and only 22% for distribution works. These figures blatantly contradict the agreement’s stipulation for project completion within 60 months.
City corporation field officials reported that, despite 39 months having passed, only a limited number of tasks have been successfully completed. Preliminary inspections in July and August 2023 indicated progress well below the expected standards.
Furthermore, the construction company failed to meet crucial milestones during the project’s timeline, not just towards the contract’s end, as mandated by the agreement, Mr. Dudgunti explained.
In accordance with the terms of the DBOT contract, the responsible party is obligated to pay liquidated damages to the city corporation if it fails to achieve milestones within the agreed-upon timeframes, added the Commissioner.
