Bangalore Metro facing over 29 arbitration cases with major contractors

Disha Posted on: 2020-03-12 08:16:40 Viewer: 45 Comments: 0 Country: India City: Bengaluru

Bangalore Metro facing over 29 arbitration cases with major contractors

Bangalore, India (Urban Transport News): The Bengaluru Metro Rail Corporation Limited (BMRC) is facing at least 29 more arbitration cases out of which most cases are filled by the construction companies. The land acquisition is not only a major problem for the Bangalore Metro and associated authorities. The cases pertaining to the Bangalore Metro's Phase I and Phase II are likely to be a BMRCL's exchequer's pie. The companies that have invoked arbitration cases against BMRCL are based on the grounds that the utility didn't hand over the required land for the project on time and changed the scope of the loss incurred on the account of the extended stay in the project etc, The information has been highlighted in the BMRCL's annual report.

The companies that have filed the complaint as per the details under the Right to Information (RTI) includes Simplex Infrastructure Ltd, URC Construction Pvt Ltd, Larsen Tubro Ltd, IDEB Projects Ltd, etc. While the BMRCL has already paid the two companies while the hearings of other companies are pending in the court. The two companies that have received the payments are Punj Lloyd Sembawang- Sembawang (Joint Venture) and ITD Cementation Ltd.

The BMRCL has not disclosed the exact amount paid to both of the companies, although the details are under the RTI consideration. Out of the 16 companies, BMRCL has engaged ITD Cementation India, L&T Ltd for the construction of the Phase II corridor of Bangalore Metro.  The government official said, "If the right of way is not provided on time, the contractor has every right to go to court." The official explained, "Some construction companies quote very low prices just bag the contract even though they know that it's not possible to complete the project that price.

They do it because they are confident about finding a loophole in the tender i.e. land acquisition. If the right of way is not provided on time, the contractor has every right to go to court. In a massive project like Metro, there are several such examples where the executing agencies tend to go wrong." The cases that are partly allowed by the Arbitral Tribunal are related to ITD Cementation India (three cases), CEC- Soma- CICI (JV), L&T Ltd (three cases), Montt MacDonald (two cases), URC Construction and Navyuga Engineering Company.

  




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