The Chandigarh Municipal Corporation has directed the Jaypee group, the company running the garbage processing plant in Dadumajra, and the new company that would take over the operations, to settle the payment issue between them.
In a meeting on Wednesday, senior deputy mayor Davesh Moudgil also proposed to impose penalty on the Jaypee Group for leaving the municipal corporation in the lurch despite the agreement being for 30 years. An UP-based company would take over the operations of the garbage processing plant in Dadumajra soon.
Mpiudgil said: “The Jaypee Group left us in the lurch even after entering into an agreement for 30 years. Therefore, penalty should be imposed on them. It is a breach of agreement.”
The representatives of Jaypee Group objected to it. A municipal official said: “It was decided that the company, which is taking over the operations, settles the payment issue with the Jaypee Group. The new company would be given the list of their plant and machinery.”
As the civic body had mutually decided with Jaypee to terminate the agreement, the salvage value was to be paid to the Jaypee group. The Jaypee Group had demanded Rs 30 crore for their plant and machinery. Both the MC and the new company were not ready to pay such a hefty amount. In its last meeting, the municipal corporation had approved the termination of the agreement with the Jaypee Group. The agreement is being terminated with mutual consent. The operation of the solid waste plant will be handed over to another company. In 2005, the civic body had signed a contract with the Jaypee Group for 30 years.
However, the tussle over non-payment of tipping fee forced them to cancel the contract. The Jaypee Group kept sending letters to the civic body that it was running into losses and demanded the tipping fee. The National Green Tribunal had directed the municipal corporation to solve the issue amicably and place it before the court on September 13.