Bihar govt issues legal notice to RIL

Annoyed over Reliance Industries' (RIL) alleged lackadaisical attitude in fulfilling the terms and conditions under which it was awarded the contract for reviving a state-run sugar mill, the Bihar government has issued a notice to the Mukesh Ambani-led firm.

"SBI Caps, the agency entrusted by the state government, has sent the notice to RIL asking it to comply with the terms and conditions laid down for awarding the contract within 15 days, failing which, the contract will be cancelled for fresh tenders," state minister for sugarcanes Gautam Singh told PTI here today.

Singh said RIL was awarded the contract to revive the sugar mill at Motipur in Muzaffarpur district last year and it deposited Rs 5.75 crore as security deposit for the tender.

RIL spokesperson could not be contacted for comments.

RIL was required to deposit half of around Rs 45 crore estimated for handing over the state-run mill to it for revival and expansion within three months of the winning the contract, the minister said.

"Mukesh Ambani's firm has so far failed to deposit the money and therefore SBI Caps, following our instructions, has sent a legal notice asking the firm to comply with the agreement within 15 days, failing which, we will be constrained to cancel the contract and process for the tender afresh," Singh said.

He, however, said the government would not be harsh in its approach and it would consider doing the needful once RIL's reply to the notice was received.