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The Municipal Corporation has forfeited the security deposit of Jai Prakash Associates Ltd for its failure to make the garbage processing plant at Dadumajra fully operational.
Around Rs 1.16 crore was deposited by the company as security before setting up the plant,with the condition that the Municipal Corporation could forfeit the amount in case the plant was not made functional within a year.
Since its inauguration in 2008,the plant has been embroiled in controversies. MC officials said the operator could not check the problems in the functioning of the plant brought to its notice from time to time.
The complaints,among others,were that the garbage was not being processed fully,leading to the generation of a huge quantity of organic waste (inerts),which was being dumped near the site.
Further,according to officials,the company had failed to install the complete equipment and could not check the emission of foul smell.
In April 2008,the MC had issued a showcause notice to the company for non-performance. On Wednesday,Municipal Commissioner Roshan Sunkaria held a hearing pertaining to the notice and decided to forfeit the security deposit.
After holding hearings till now and getting satisfied that the company has failed to comply with the provisions agreed thereupon,the Commissioner,Municipal Corporation,Chandigarh,has forfeited the performance security of the company amounting to Rs 1,16,45,000 by invoking Clause 5.1 of the Implementation Agreement,signed between the Municipal Corporation,Chandigarh,and Jai Prakash Associates Limited,for its failure to make the plant fully operational as per the terms and conditions, the order states.
Councillor Chander Mukhi Sharma said his stand about the plant not being functional has been vindicated. Earlier,a committee headed by Sharma had prepared a report on the functioning of the plant. The report is yet to be discussed in the House.
Since the executive has finally taken a decision,we will now discuss the report. The stench emanating from the plant has been bothering residents living around it for many months, Sharma said.
The company,meanwhile,has been directed to install complete equipment and necessary devices to control the emission of foul smell. Also,it has been directed to process the garbage till it turns refused derived fuel (RDF).
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