Thane Municipal Corporation Blacklists Contractor for Provident Fund Non-Payment

Thane: The Thane Municipal Corporation (TMC) has blacklisted the contractor Kalpesh Enterprises of Navi Mumbai for failing to deposit the provident fund (PF) of the contractual sanitation workers. As a result, the contractor will be ineligible to participate in any tender processes of the TMC for the next three years, and the security deposit amount with the civic body has also been confiscated.

Contractor failed to perform mandatory duties

The contractor was responsible for street cleaning in ward no. 18 in the TMC area. It is mandatory to deduct the contribution of the contractual sanitation workers in that area, collect the contribution amount from the contractor, and deposit it into the provident fund account. However, the minimum wages for the past two months and dues from April 2022 of the employees in this area remained unpaid. Additionally, the contractor failed to provide materials and safety equipment to the employees and did not submit an explanation despite receiving a notice. Despite repeated opportunities, the contractor's behavior did not improve. This not only disrupted essential services in the TMC but also tarnished the Corporation's image and denied sweepers their rightful justice. Consequently, action has been taken in accordance with the terms of the agreement.

Tushar Pawar, Deputy Commissioner of Solid Waste Management at TMC, stated, "The contractor's security deposit has been forfeited, and he has been blacklisted, preventing him from participating in any TMC tenders for the next three years. For the contractual sweepers in ward no. 18 whose Provident Fund and State Workers' Insurance Commission contributions are outstanding, the TMC will credit the workers' accounts with the respective authorities using the balance dues and security deposits of the contractors."

May 2022 order against Contractor

Earlier, in May 2022, the Provident Fund Office in Vashi issued a prohibitory order against the contractor. Consequently, a total of Rs. 32,69,504 was deducted from the contractor's monthly bill and paid by the TMC to the Provident Fund Office in Vashi.

In January and February 2023, TMC issued notices to the contractor regarding non-payment of the Provident Fund amount. Despite follow-ups, the contractor only deposited the contributions up to March 2022 into the provident fund account. Eventually, the solid waste department took action to blacklist the contractor.

TMC Chief Abhijit Bangar has consistently prioritized employee welfare. The new road cleaning contracts emphasize excellent work from all sanitation workers responsible for city cleanliness, and TMC takes responsibility for their well-being.