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Friday, September 27, 2024

PWD assets seized for failing payment of Rs 1.2Cr to civil contractor

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Yadgir

Furniture, computers, and UPS units were seized from the Public Works Department (PWD) office following a court order in Yadgir. This action was taken after the PWD failed to pay Rs 1.2 crore to contractor SS Police Patil for a road project completed in 2017.

The contractor, who built the road from Ambedkar Circle to Hattikuni cross, did not receive a payment of Rs 27.5 lakh for two years. Frustrated, he approached the Kalaburagi bench of the Karnataka High Court in 2019, claiming harassment by the PWD. Executive Engineer KS Abhimanyu stated that the project was under the Directorate of Municipal Administration (DMA), and since the necessary funds were not released, the PWD was included in the lawsuit.

Patil reported significant losses, as his construction machinery worth Rs 40 lakh sat idle during the wait for payment. Under the Indian Contract Act of 1872, the PWD was required to pay pending bills within 60 days, along with interest if they failed to do so. In 2021, the court set the dues at Rs 1.05 crore, giving the PWD 120 days to appeal, which they did not.

In November 2023, the contractor filed for execution, leading to a June 2024 court order requiring the PWD to pay Rs 1.2 crore by September 27, 2024. With no action taken by PWD officials, the court ordered the seizure of assets from the district office. The total dues were calculated to include machinery losses, legal fees, and court fees.

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