The company had provided hospitality services provided to Chief Minister Ekanth Shinde and some ministers and officials during their visit to the World Economic Forum in Davos. (Photo: X/ @mieknathshinde)
The Maharashtra government has received a legal notice from a Switzerland-based services sector company for alleged non-payment of bills amounting to Rs 1.58 crore, which the company had submitted for hospitality services provided to Chief Minister Ekanth Shinde and some ministers and officials during their visit to the World Economic Forum (WEF) in Davos, Switzerland, in January.
In the notice dated August 28, addressed to the Maharashtra Industrial Development Corporation (MIDC), the chief minister’s office, External Affairs Minister S Jaishankar, and the WEF, among others, the contractor SKAAH GmbH has alleged that the state-run MIDC has not paid Rs 1.58 crore. This, despite the Swiss firm submitting bills for the services provided to MIDC during the WEF convention, held from January 15-19, it states. According to the notice, MIDC has paid over Rs 3.75 crore of the total bill, and this is the balance amount.
When contacted, MIDC CEO P Velrasu said, “I am not aware of any such notice. However, MIDC will check the vouchers and take necessary action. The matter based on merits will be decided at the earliest.”
The opposition Maha Vikas Aghadi MLAs, including Sena UBT’s Aaditya Thackeray and NCP(SP) MLA Rohit Pawar, have also alleged that the government overspent on the Davos trip.
Admitting that the legal notice was received, state industries minister Uday Samant said, “We have not overspent. It is MVA MLAs who are making these allegations… Our legal team will reply to this notice and see what the issue is.”
Criticising the government, NCP MLA Rohit Pawar said, “Such insolence by the Maharashtra government could tarnish Maharashtra’s reputation at a forum like Davos, which is important for international investment and sends a wrong message to investors.”
The notice, which warns of a lawsuit, states, “All the payments were kept outstanding and pending on the trust in the MIDC being a government organisation and in good faith, with the expectation of payment in due time and as agreed between the parties. However, MIDC has miserably failed to make the payment for the sum outstanding, resulting in substantial financial damage and harm to our client, our client’s credit, and financial situation. Thus, MIDC hereby held liable to pay the total outstanding amount of Rs 1,58,64,625.90 along with interest at 18% per annum…”
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“This issue is impacting international relations between India and Switzerland, and prompt resolution is necessary to prevent any further disputes or conflicts that could arise from the unresolved payment,” the notice states.
It also highlighted that while services were to be offered to a designated number of individuals, the visitors at the WEF convention exceeded that number, yet the company delivered the services and accommodated all necessary demands.
“Despite our client’s repeated requests for payment, which were made through calls and mail to the representatives of MIDC, the payments have been persistently delayed. The MIDC and its representatives consistently provided excuses for these delays… MIDC and its representatives have deliberately neglected their duties, responsibilities, and accountability towards our client,” it states.
The notice also states that the MIDC and its representatives caused significant monetary and economic loss to the Swiss firm, as well as loss to individuals employed by it. “These consequences appear to be deliberate and intentional,” it states.
Vallabh Ozarkar is a Senior Correspondent with The Indian Express' Mumbai bureau, recognized as an authoritative and deeply knowledgeable voice on the politics, governance, and infrastructure of Maharashtra. With more than nine years of experience in major news organizations, his reporting delivers high standards of Expertise and Trustworthiness.
Expertise & Authority
Current Role: Senior Correspondent, The Indian Express, Mumbai bureau.
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Political Dynamics: In-depth analysis of the ruling coalition (Mahayuti) and opposition (MVA), internal party conflicts, and crucial election updates, including local body polls and municipal corporation tussles.
Governance & Policy: Focused coverage on significant state policies, such as the overhaul of Mumbai's 'pagdi system' (rent control for old buildings) and social welfare schemes (e.g., Ladki Bahin Yojana accountability).
Infrastructure & Development: Reports on major urban and regional infrastructure projects, including the Mumbai Water Metro, Uttan-Virar Sea Link, and Thane Metro development.
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Experience
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