SRINAGAR: The Chief Engineer, PMGSY, Jammu, has terminated the contract of a joint venture for the Kainthgali Block boundary Udhampur-Bariote (Part-I) road after the contractors allegedly failed to undertake required construction and routine maintenance work despite repeated notices, and ordered recovery of Rs 4.326 crore.
The action was taken against M/s B&L Project Construction Pvt. Ltd. and M/s B.S. Builders (JV), which had been awarded the work under PMGSY Package No. JK14-684 in Block Panchari, Udhampur district.
According to the termination order dated September 29, 2026, the project was sanctioned under Regular PMGSY Batch-I, 2018-19, at a cost of Rs 21.13 crore and allotted to the joint venture for Rs 20.67 crore. Of the allotted amount, Rs 19.11 crore was earmarked for construction and Rs 1.55 crore for maintenance, with a stipulated completion period of 25 months.
The order said the contractor carried out bituminous work on only about two kilometres before stopping work without a justified reason. It allegedly failed to resume the bituminous work or complete other essential components, including General Sub-Base laying and protection works, despite repeated directions.
The authorities said the lack of progress caused inconvenience to the public and raised concerns over the execution of the project.
The work was reported completed on March 28, 2024, after which the contractor became responsible for routine maintenance of the road under the terms of the agreement. However, PMGSY authorities alleged that the joint venture subsequently failed to fulfil its maintenance obligations and discontinued the required work.
Chief Engineer PMGSY Jammu PK Phonsa said the joint venture, comprising two Kashmir-based firms, had been assigned the road work in the Bhamag/Pancheri area covering parts of Udhampur and Reasi districts and was required under the agreement to undertake maintenance.
The department issued several notices through the concerned Executive Engineers and Superintending Engineer, but the contractor failed to undertake the maintenance work, Phonsa said. The termination followed a recommendation from the Executive Engineer concerned.
The order imposed damages of Rs 360.50 lakh for alleged non-performance and breach of contractual obligations, besides an additional 20 per cent penalty of Rs 72.10 lakh under Clause 43.4 of the Standard Bidding Document. The combined recoverable amount is Rs 4.326 crore.
It said any amount still outstanding would be recovered from other claims, deposits, securities or payments due to the contractor under PMGSY in Jammu and Kashmir.
The joint venture has also been debarred from participating in PMGSY tenders and works under JKR RDA for one year from the date of the order. Its performance security and security deposits have been ordered to be forfeited in accordance with the agreement.
The Executive Engineer, PMGSY Division Reasi, has been directed to initiate fresh tendering for routine maintenance of the road.
