Bombay High Court Questions BMC On RSIIL Contract Termination; Seeks Hearing Clarification

The Bombay High Court on Tuesday asked the Brihanmumbai Municipal Corporation (BMC) whether it is willing to give a hearing to Roadway Solutions India Infra Limited (RSIIL), the contractor who was terminated from carrying out the road concretisation work in South Mumbai due to alleged delay in implementing the project.

The RSIIL filed a petition in the high court challenging the BMC decision to revoke its contract alleging that it was not given a hearing. A division bench of Justices Gautam Patel and Kamal Khata noted that from the plea, it seems that the firm was not given a hearing and asked the BMC counsel whether the civic body was willing to give a hearing.

The RSIIL claimed that it was called for a hearing, but on the given day, its official concerned had to attend a hearing related to the GST issue. Hence, it sought another date from the civic body. However, the BMC simply revoked its contract.

High court questions BMC

The bench questioned how the contract could be revoked without giving a hearing. “A simpler way is for you (BMC) to say that you will hear him (RSIIL)...” Justice Patel said.

The BMC counsel said he will take instructions and inform the court.

The BMC had issued the tender for Rs 1,033.11 crore for concretisation of 297 roads in the city. The work was to be completed in 24 months, minus the monsoon season. The civic body has awarded contracts for concretisation of 397 roads to five firms totalling over Rs 6000 crore.

RSIIL contract terminated on November 9

The contract was awarded to RSIIL on January 4, but the same was terminated on November 9 stating that the contractor has not commenced the work even after 8-10 months of awarding the contract. RSIIL had challenged this before the high court, which on November 30 last, restrained the BMC from taking any coercive, curative or further punitive action against the contractor.

The BMC then issued a fresh tender. However, the HC stayed further proceedings in the tender process observing that there was no urgency in road concretisation work.

Meanwhile, South Mumbai corporator Makrand Narwekar withdrew his intervention application in the matter as the court was not inclined to allow the same.

Narwekar, had sought to intervene urging the HC to permit continuation of road concretisation work to prevent inconvenience to the public due to pothole-ridden and dug up roads, which has led to accidents causing loss of human lives.

The application filed through advocate Prerak Chaudhary contended the situation as it stands today, neither RSIIL is carrying out the concretisation work nor is another contractor being appointed. This has caused anxiety among the residents in Colaba due to bad conditions of the roads.