Jammu Kashmir: Two Road Contracts Terminated; Contractor Blacklisted, Rs 3.64 Crore Penalty Imposed | Kashmir Life

SRINAGAR: The Jammu and Kashmir Government has terminated two major road construction contracts in Kathua district and blacklisted the executing firm for failure to complete the works within stipulated timelines, imposing penalties exceeding Rs 3.64 crore, an official spokesman said.

Deputy Chief Minister Surinder Choudhary said the contracts, awarded to M/s Puran Chand and Sons, Jammu, were cancelled after the contractor failed to meet deadlines despite repeated notices and extended opportunities.

The terminated projects include the construction of a road from Malhar to Marhoon (Package No. JK07-136, Phase X, Stage-I) and the construction and maintenance of a road from L031 Mahan to Banjar (Package No. JK07-219, Phase XII). Both projects were taken up under the Pradhan Mantri Gram Sadak Yojana (PMGSY).

According to an official order issued by the Office of the Chief Engineer, PMGSY, the contractor did not mobilise adequate machinery, manpower and resources, resulting in prolonged delays. The order noted that despite multiple notices, review meetings and assurances, the pace of progress remained unsatisfactory, adversely affecting connectivity and causing inconvenience to the public in the affected areas.

In both cases, the contracts were terminated under relevant clauses of the Standard Bidding Document (SBD). Liquidated damages and penalties amounting to Rs 1.46 crore in one project and Rs 2.17 crore in the other have been imposed, taking the total penalty to over Rs 3.64 crore.

The concerned Executive Engineer has been directed to recover the penalty amounts from pending dues, including security deposits, performance securities and bank guarantees of the contractor.

The Deputy Chief Minister said that apart from the financial penalties, the contractor has been blacklisted and debarred from participating in future PMGSY works for a period of one year.

He further stated that fresh tenders have been ordered for completion of the balance works to ensure early restoration of connectivity. Emphasising that the timely and quality execution of developmental works is non-negotiable, he said public infrastructure projects must be completed within prescribed timelines and standards.

Choudhary cautioned that erring contractors may face strict action, including blacklisting, if they fail to adhere to contractual obligations. He reiterated the government’s commitment to accountability, transparency and accelerated development across Jammu and Kashmir.