Chandrapur Bridge Story: The construction cost for the two bridges was Rs 2 crore 26 lakh. But, the government will have to pay Rs 541 crore for this. You may be shocked to hear..but, this is true.. There are two bridges on Pothra river connecting Chandrapur and Wardha districts namely Khambada Bridge and Shirnai. Actually both these bridges are of British period. But, a tender was floated in 1997 for their renovation, and things started from there.
Government has to pay Rs 541 crore for a work worth Rs 2 crore 26 lakh due to negligence of government officials. But this time did not come to the government in a few days.. it took two decades. Public works department officials fought a court battle on one issue and lost the court battle at all levels, now the PWD has to pay more than 500 crores to the concerned contractor for a work of 2 crore 26 lakhs.
What is the story of bridges?
On October 1, 1997 , the Public Works Department of the State Government floated a tender. A tender was floated to build a new bridge instead of the British era bridge. Nagpur’s Khare & Tarkunde Infra Private Limited Company got the job for two crore 26 lakhs. By October 21, 1998, the company completed the bridge work. The company wanted to recover the cost of the bridge through tolls on the principle of build, use and transfer. Toll collection started, but the toll booths were closed due to opposition from local leaders. As per the terms of the contract, the company appealed to the Public Works Department arbitrator
What happened when it went to arbitration?
RH Tadvi was the chairman when the matter came to arbitration. On March 04, 2004, he directed the Public Works Department to pay Rs. 5 crore 71 lakhs to the concerned contract as per the terms of the contract.. and also stipulated to pay interest at 25 percent compounded monthly in case of delay. Knocked on the door.
What happened in the court..?
As the decision of the arbitrator was not accepted, the officials of the Public Works Department rushed to the court. From 2004, the case went to court. According to the terms of the contract, the Public Works Department was directed to pay Rs.5 crore 71 lakh to the concerned company. The battle then reached the District Court and after the Sessions Court the battle reached the High Court. On February 18, 2021, the High Court also upheld the decision of the arbitrator. After the verdict, the Public Works Department was bound to pay the concerned contractor. The amount to be paid to the contract door as 25% compound interest every month has increased to 541 crores instead of 5 crores 71 lakhs.
Our representative Rajat Vashisht says, after the decision of the High Court, Khare & Tarkunde Infra Pvt. Ltd. filed a complaint with the Public Works Department for money. The authorities did not reach any decision and in the meantime the Public Works Department had knocked on the Supreme Court’s door.
Then the case went to Supreme Court.. What happened next?
Both the state government and the contractor company appeared in the Supreme Court big advocates. Solicitor General Tushar Mehta was from Public Works Department. While Abhishek Manu Singhvi from Khare & Tarkunde Infra was as counsel. A three-member bench headed by the then Chief Justice heard the case. On December 1, 2021, the Public Works Department’s arbitration and High Court decision were upheld. The Supreme Court decision went in favor of the contractor company. Subsequently, the court rejected the request of the Public Works Department officials to reduce the amount to be paid to the contractor. 541 crore has been given an extension of three months to the contractor.
In the original contract for the construction of the bridge, there was a condition that 25 percent interest would have to be paid per month compounded. In that regard, why did the officials of the Public Works Department go to the court continuously..? Why did she go to the Supreme Court after losing repeatedly? Therefore, these questions have also arisen inside. Then, why officers escalate the case.. so a departmental officer gives a contractor an increase after an arbitral award…there is a sasemira of inquiry about the increase by the concerned authorities… to avoid that the officers take the case to court, and further delays for decades..and the case. It reaches such an expensive turn…and today due to one such officer the government has to pay 541 crores in compensation of 2 crores 26 lakhs..
ABP Mazha also tried to get the opinion of the concerned contractor company i.e. Khare & Tarkunde Infra Private Limited Company in this matter. But he refused to speak in front of the camera… If the public works department had paid the money in 2004 as per the terms of the contract, then the matter would have ended in Rs 5 crore and seventy one lakhs.
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