3 min readFeb 15, 2026 10:25 AM IST
First published on: Feb 15, 2026 at 10:25 AM IST
The Municipal Corporation has imposed a penalty of Rs 35 lakh on Lions Services Limited, the agency responsible for GIS-based mechanised and manual sanitation in the city’s southern sectors (31 to 56, 61 and 63), over allegations of negligence, inadequate staffing, and violations of contractual norms.
According to sources, the firm’s contract period had already expired, yet it continued to receive extensions for several months. Complaints were also raised that for years the company had not provided workers with essential supplies such as gloves, oil, and soap. These items were reportedly distributed only a few days ago.
Municipal Commissioner Amit Kumar said, “Six companies have applied for the sanitation tender for the southern sectors. One will be finalised after technical scrutiny. The previous contractor has been fined Rs 35 lakh.”
Meanwhile, Lions Services Limited, will continue till March, as per their contract.
Six firms in the fray for fresh tender
The civic body has now issued a fresh tender to appoint a new agency for sanitation in the southern sectors. Six companies have applied, and one will be finalised after technical evaluation. Earlier, when the tender was first floated, only two firms — Lions Services Limited and People Connect Services — had applied. However, only Lions qualified technically, limiting competition and prompting the corporation to reissue the tender.
The MC had also earlier considered splitting large sanitation projects into smaller segments so that more companies could participate and ensure healthy competition. The fresh tender has now attracted wider participation, giving the corporation more options for selection.
Allegations over payment practices
As per sources, the present company has faced allegations in the past of being favoured despite shortcomings. As per rules, contractors’ bills are to be cleared only after employee salaries are paid, but it was alleged that payments were released to the company first and wages were disbursed later.
Former commissioner Vinay Pratap Singh had earlier flagged this practice in a corporation meeting, calling it contrary to norms.
GIS monitoring to enhance accountability
The Municipal Corporation plans to strengthen sanitation monitoring through technology-driven systems, including GIS-based tracking. The system will provide route mapping of vehicles, real-time reporting, location tracking, a complaint redressal control number, and bank guarantee provisions, aimed at improving transparency and accountability in sanitation services.
Complaints were also raised that for years the company had not provided workers with essential supplies such as gloves, oil, and soap. 
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