The MMRDA has sought legal opinion in the backdrop of blacklisting of the Mumbai-based infrastructure company by the BMC
Will J Kumar Infraprojects face another round of rough we ather?
The Mumbai Metropolitan Region Development Authority (MMRDA) has sought legal opinion in the backdrop of blacklisting of the Mumbai-based infrastructure company by the Brihanmumbai Municipal Corporation (BMC).
The associate advocate general of Maharashtra Rohit Deo has given an opinion which may go against awarding any contracts to the company.
Also, in the wake of Mumbai civic elections early next year, there is a possibility that the issue might gain political momentum.
Ever since measures were initiated to blacklist the listed company, the MMRDA and Mumbai Metro Rail Corporation (MMRC) have either cumulatively awarded contracts or are in the process of awarding works of around Rs 11,500 crore to J Kumar Infra. This, sources say, is from a total of five work contracts within Mumbai.
In fact, Congress leaders have already started making noise on the issue alleging corruption. Congress, which is the main opposition in Maharashtra after the 2014 rout, has said the adverse opinion given by the advocate general was ignored while awarding contract of Metro projects.
J Kumar Infraprojects was blacklisted earlier this year by the BMC following a road scam.
Congress state unit spokesperson Sachin Sawant said that Bombay High Court has cancelled the works given to the company regarding the road works in Mumbai. During this time, MMRDA sought legal opinion from Associate Advocate General on this issue.
The associate advocate general responded stating that “the decision to open or not to open the financial bid would be within the executive domain of MMRDA and the cumulative effect of the relevant considerations will have to be assessed. Refusal to open the financial bid of a technically qualified bidder entails extremely serious and far reaching consequences for the contractor. The decision of MMRDA must therefore satisfy the test of proportionality. The assessment of MCGM and the cancellation of the contracts by the Honourable courts order dated 5th July, 2016 are undoubtedly relevant factors. Equally relevant and important factor would be the track record of the contractors in executing MMRDA works.”
Sawant alleged that despite such opinion by the AG if MMRDA headed by chief minister is not cancelling the contract given to the company itself shows that corrupt contractor is being shielded by the chief minister.
Additionally, in a recently held executive committee meeting of MMRDA concerns were raised against the same company as it has emerged as lowest bidder for Santacruz Chembur Link Road Extension project at 5,431.01 crore.
During the meeting BMC commissioner Ajoy Mehta advised to have “Extra Vigilance” and even appoint a “Third Party Consultant” for the same.
Meanwhile, J Kumar has moved the Supreme Court appealing against Bombay High Court’s decision. A final verdict on the matter is awaited, depending upon the SC’s decision the company’s future will be clear.
PROJECTS IN QUESTION
Project/ Partial project
- Dahisar-Charkop-DN Nagar Metro 2A
- Colaba-Bandra-SEEPZ Metro 3
- Andheri East-Dahisar East Metro 7
- Santacruz Chembur Link Road Extension
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