Maharashtra gets notice for going back on toll pact

The state government allowed IRB to collect toll through a December 17,2011 notification. But exactly a month later,it was asked to stop collecting toll. While state government agencies claim that the quality of IRB’s work is deficient,some state and IRB officials privately say that the government’s hand was forced by opposition to toll by local politicians.

With interest costs alone touching Rs 40 crore,IRB served a notice to the two bodies on January 23,demanding the toll suspension notice be lifted and compensation for losses incurred over the last one year as the roads are being used since their completion in 2011. A copy of the notice has also been sent to the chief minister,the deputy chief minister,the chief secretary and secretaries of the urban development and public works departments.

IRB chairman and managing director Virendra Mhaiskar said the company is also contemplating going to court seeking permission to collect toll as per its agreement with the state government. IRB,incidentally,made national headlines late last year following reports that Mhaiskar had invested in previous BJP president Nitin Gadkari’s Purti group.

Under the project agreement,IRB was allowed to collect toll from December 20,2011 until March 31,2039. The company was awarded the project in March 2008 and a concession agreement signed in July 2008 but work could not start until November 2009 as the Bombay High Court had not allowed cutting and felling of trees for the roads.

Last March,the government appointed a three-member technical committee to ascertain if IRB had completed 95 per cent work as per the specified quality standards for it to be allowed to collect toll. The panel submitted its report in January and it was considered at a meeting chaired by the chief secretary.

“Taking into account the changes done by Kolhapur Municipal Corporation and MSRDC in earlier scope of work,in view of the local conditions,and handing over of the sites to the agency,95 per cent of the work is completed… Quality of work done varies from good and somewhat good in various sections of work,” minutes of the meeting say.

Reached for her comment,KMC Commissioner Vijayalakshmi Prasanna Bidari said: “We have received the notice from the company and will reply to it. However,I have not received the copy of the report submitted by the committee and have requested for a copy of the same. The decision has to be taken at the highest level.”

Sonia Sethi,joint managing director,MSRDC,said the state government is considering the matter and will reach a decision soon.

“The matter is pending with the state government. It is not really in the MSRDC’s purview to take any decision,” she said.