Published On : Tue, Jul 30th, 2013

NMC contractors demand clearance of dues

The cash-starved NMC had refused to accept the bills of contractors from March this year even before the Local Body Tax (LBT) was enforced by the NMC. The NMC owned Rs 30 crore to contractors till March, sources said. At present, the almost bankrupt NMC is under the weight of Rs 50 crore of pending bills to be cleared. Moreover, the “guilty” NMC bosses have issued directives to penalize those contractors who have not completed their works within the stipulated periods totally forgetting the NMC has not cleared their bills amounting to Rs 50 crore.

Nagpur News: Patience of the contractors of Nagpur Municipal Corporation, which owes the former dues running into crores.The NMC which presently stands amidst dire financial crisis had stopped accepting the bills from contractors from the month of March.

The main source of NMC’s income the octroi was replaced by Local Body Tax, leaving the corporation strapped for cash.

At present the NMC is precariously heading on the verge of bankruptcy and has stopped payments to contractors, bring development works to a virtual standstill.

A delegation of contractors, under the banner of Municipal Corporation Contractors Welfare Association, led by president of the organisation Vijay Naidu, met mayor Anil sole, municipal commissioner Shyam Wardhane to demand for immediate remittance of pending payment.

The delegation also submitted memoranda to Standing Committee chairman Avinash Thakre, leader of the ruling alliance Pravin Datke and other senior officials and office bearers of the NMC.

According to sources the NMC owed about ` 30 crore to contractors till the month of March. Over the past few months the dues have risen to ` 50 crore.

A few contractors left work midway due to continuously increasing non payment by NMC. Rather than making the payments, the NMC went on to slap fine on the contractors for delay. Cornered to the wall, the NMC contractors finally gathered and approached NMC officials.

Vijay Naidu termed the decision of slapping fine on contractors for delay as unfair. According to him the contractors have stood by the NMC even during these difficult times. He said that according to the new NMC laws all contractors should be paid by end of the month.

He said that pending work would only be cleared if bills are paid.

Mayor Anil Sole assured the contractors that he would look into their demands and said that few norms would be relaxed.