The Brihanmumbai Municipal Corporation (BMC) has taken decisive action against Roadways Solutions India Infra Limited (RSIIL), terminating their INR 1,600-crore contract for cement and concrete (CC) roads.
The move, announced by Industries Minister Uday Samant in the legislative council, follows the BMC’s decision to blacklist RSIIL and recover a substantial fine of INR 64 crore from the company. Minister Samant revealed that RSIIL’s contract termination was prompted by multiple violations, leading to penalties not only for RSIIL but also for four other companies involved in delays related to the project, amounting to a total fine of INR 111 crore. Highlighting the severity of the BMC’s stance, Samant emphasized the corporation’s commitment to upholding contractual integrity and ensuring timely project completion.
The controversy arose following the initial award of contracts under the Mumbai Coastal Road initiative, which aimed to transform city roads into durable CC roads by 2024. Despite these ambitions, issues plagued the execution, including delays and inadequate responses from bidders, prompting the BMC to reassess its strategies and impose stringent penalties for non-compliance. BMC’s scrutiny extended beyond financial penalties, as political representatives including BJP MLC Prasad Lad and Sena UBT MLC Anil Parab called for broader investigations into the contracting process.
RSIIL’s contractual woes have escalated further with the BMC directing the company to pay penalties within a stipulated timeframe, underscoring the corporation’s determination to enforce contractual obligations rigorously. Despite legal challenges mounted by RSIIL through arbitration, BMC remains resolute in its decision to uphold project standards and accountability. The BMC’s actions not only reflect its regulatory responsibilities but also serve as a cautionary tale within Mumbai’s construction sector, highlighting the repercussions for non-compliance and delays in executing public infrastructure projects.
