Vendors of Ahmedabad metro protest over dues

Vendors of the Metrolink Express between Gandhinagar and Ahmedabad Co Ltd (Mega) held rallies here on Saturday, demanding dues of Rs 80 crore from the company.  

The agency managing the metro project here has paid only Rs 20 crore after similar protests in November last year. “We have even written a letter to Gujarat Chief Minister Narendra Modi, but in vain. We may now seek the legal course since only 20-25 per cent of the dues have been paid,” said Kirit Faldu, president, Mega Vendor Welfare Association.

About 30 of the 44 Mega vendors are members of the association. According to the association, Mega had distributed purchase orders worth about Rs 300 crore for the supply of earth filling material, to be dumped at Mega’s 700,000-sq-m test track site in Motera in Gandhinagar.

"With each of the PO worth Rs five crore and in 100,000 tonnes, the order was to be completed in a short span of 90 days, leaving each of the suppliers to arrange for 44 dumpers daily with a capacity of 30 tonnes each to dump material worth over Rs 6.66 lakh. We were required to work continuously for 75 days per 24 hour working day," said Jatin Bhayani, chairman of MVWA.

However, after making all advance payments to material suppliers and transporters, the vendors have still not been paid in full by MEGA, the association said. Of the total PO worth Rs 300 crore put out by MEGA, MVWA member vendors submitted a bill of Rs 123 crore, out of which only Rs 85.22 crore worth payment has been made so far by MEGA, MVWA alleged. In its other allegations, the association stated that several cheque issued in September 2013 by MEGA bounced.

MEGA officials could not be contacted despite several attempts. However, a senior state government official stated that things have slowed down due to change over in the management. Post exit of former bureaucrat Sanjay Gupta, a new management took over at MEGA led by Manjula Subramanian as chairman, IP Gautam as vice chairman and Vijay Nehra as chief executive officer of MEGA.

The association also alleged that apart from non-payment of dues, MEGA has also been cancelling purchase orders citing lack of authenticity in the documents. "Moreover, MEGA now wants vendors to get environmental clearance certificate, for continuation of the purchase order, which actually falls in the scope of MEGA. We, on the other hand, are just intermediaries between quarry owners and MEGA the actual users," Bhayani added.

MVWA alleged that the nodal agency for the metro project has "verbally" said the site where the vendors are dumping material does not belong to MEGA.

"Hence, if MEGA cannot pay, then how or why did they release cheque earlier. Also, if the site does not belong to them, then what about the hundreds of crore of rupees worth material being dumped by us and part payments made by MEGA? MEGA also does not answer who is going to compensate for the losses incurred by each and every vendor, for the advances given to the quarry owners and the hired dumpers," he added.