The Belagavi City Corporation (BCC) has been directed to pay ₹12.4 crore to Hygriva Company following a final arbitration award issued by the Dharwad bench of the High Court on July 12. The company had initially demanded ₹35 crore, citing additional costs incurred while executing development works in the city.
The dispute traces back to 2008 when the Urban Upliftment Scheme, initiated under then Chief Minister BS Yeddyurappa, allocated ₹100 crore for infrastructure projects in Belagavi. Hygriva was contracted for multiple projects under the scheme. However, project delays and deviations from sanctioned plans reportedly escalated costs. Claiming that several works went beyond the original scope, Hygriva sought compensation and revised billing.
The matter was referred to arbitration in 2021 through an arbitrator appointed by the HC’s Dharwad bench. After prolonged hearings, the arbitrator awarded ₹12.4 crore in favour of the company. BCC’s defence was significantly supported by retired engineer RS Naik, former city engineer VM Hiremath, and ex-legal advisor Advocate UD Mahantshetty. Their thorough documentation reportedly helped reduce the claim amount by nearly two-thirds.
As of now, BCC has not clarified whether it will accept the arbitration ruling or file an appeal. Attempts by reporters to reach BCC Commissioner Shubha B went unanswered. Notably, in a similar case last year involving Shahapur Road, the corporation avoided paying ₹20 crore by opting to return acquired land instead of monetary compensation.
