NDMC annuls Rs 160 cr contract with Chinese firm

New Delhi Municipal Corporation today annuled a Rs 160 crore contract with a Chinese firm for improving infrastructure of Shivaji Stadium for violating laid down norms and allege irregularities.
The contract was awarded to M/s China Railway Shisiju Group Corporation in 2008 as part of preparation for the Commonwealth Games.
The decision to annul the contract was taken at a meeting of NDMC board, officials said.
They said the Chinese firm will be debarred from participating in any work of the civic body for next three years.
"The contract was rescinded due to illegal sub-letting of work by the firm to another agency -- M/s Simplex Projects Ltd," an NDMC official said.

The firm has been made a payment of around Rs 99.42 crore till July 2011 and no payments were made after the CBI froze the bank account of the firm, as per documents.

The CBI was investigating the alleged irregularities in the project.
The stadium was to be used during the Commonwealth Games as the practice venue for hockey. But as the renovation work was not completed, the Games organisers had to arrange an alternative venue for hockey practice.
The electrical and some other works at the stadium are yet to be completed.
The information of the Chinese firm sub-letting the work became known during investigation by CAG and Prime Minister- appointed Shunglu committee, which probed the alleged irregularities in hosting of the Commonwealth Games.

The firm in their reply sought by the NDMC in 2012 had maintained that it had tie-ups with various agencies including M/s Simplex for which they had entered into a work agreement with it.
Expressing his regret over NDMC's decision to just rescind the work, BJP MLA and NDMC member Karan Singh Tanwar said, "Instead of cancelling the contract, the company should have been blacklisted by the NDMC. But they have not even levied any penalty on it."
The remaining work will completed soon by involving another agency, the NDMC official said.
A case was also registered against former NDMC Chairman Parimal Rai for alleged irregularities in awarding contracts for the stadium.