The Mumbai Metropolitan Region Development Authority (MMRDA), on Friday, terminated a contract with LTSE for their failure to perform and fulfil contractual obligations.
LTSE is the joint venture by Larsen and Toubro Ltd. and SCOMI Engineering BHD (LTSE) which had entered into a contract with MMRDA in 2008.
"This was one unfortunate decision MMRDA had to take and terminate the contract entered into in the year 2008 when the first 9-km long phase from Chembur to Wadala was thrown open to the public", said R.A.Rajeev, Metropolitan Commissioner, MMRDA.
"MMRDA also gave them a long rope to enable them to recover from the situation. However, LTSE failed to supply the Rolling Stock Trains (RST), failed to Operate and Maintain the system on the entire corridor and failed to rectify defects as per the contractual clauses. This also resulted in inordinately delaying starting of Phase-2 of the Monorail from Wadala to Sant Gadge Maharaj Chowk. Also, LTSE failed to maintain the quality of Monorail services", clarified Rajeev.
MMRDA also informed that the decision was taken after the contractor failed to respond to the legal notice issued by the authority.
The Monorail service will continue to run as per schedule.
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