Gammon India sought Rs. 100 crore, extension till March 2018.

Gammon India had sought Rs.100 crore from Chennai Metro Rail Limited (CMRL) in May this year, claiming 70 per cent of its share of work for the project had been completed. It also sought an extension of the deadline till March 2018, according to its petition in the Madras High Court.

Gammon India, which was issued a show cause notice on May 11 by CMRL on why its contract should not be terminated, stated: 'CMRL was continuously in a denial mode and was not keen to resolve the issue or extend the time enabling it to complete the project.'

Observing that OJSC Mosmetrostroy, its partner in the joint venture, abandoned work, vacated the office and returned to Russia, the petition said: 'At this scenario, instead of lending its helping arm, (CMRL) has chosen to issue notice to terminate the contract.'

Delay in handing over the project site and approval for traffic management severely disrupted work for which they sought an extension till March 4, 2018 several times. However, CMRL did not consider the 'genuine difficulty and refused to consider its plea.' CMRL under such circumstances should have constituted the Disputes Adjudication Board, which they did, but with only one of its own employees as a member, the petition said.

On May 22, CMRL issued a notice for suspension of work with immediate effect on the ground that the Russian partner had abandoned the project. The contract for underground tunnels at Gemini, Teynampet, Chamiers Road and Saidapet was awarded to a joint venture by M/s Gammon-OJSC Mosmetrostroy in March, 2011. Soon, guarantees of Rs.15 crore from six banks were given and the completion of the work was fixed at 1,430 days from April 2, 2011.


THE HINDU