Cement scam: MC cancels contract of builders

The Municipal Corporation on Thursday cancelled the contract of A K Sood Builders and Engineers for upgrading Sector 17 and imposed a penalty of Rs 13.84 lakh.

The decision was a fall out of the cement scam unearthed last month. The firm had sublet the contract to Sarvpriya Building Products, a fact that came to light after the UT Vigilance department nabbed a contractor pilfering 200 bags of cement from a store in Sector 17. During investigation it was revealed that A K Sood had sublet the contract to Sarvpriya Building Products and this contractor was taking the cement from the store to a factory in Barwala owned by his father.

During a House Meet in March it was decided that the two contractors be blacklisted for five years and the contracted be cancelled. It was also decided that allotment of work that already started in Sector 17 be cancelled.

The builders were issued a showcause notice on April 5 and replying to it on April 8, the contractor alleged the officials of the civic body knew the contract had been sublet and he had sought permission for the same. The officials had denied this allegation.

The Municipal Commissioner today issued orders for cancelling the contract, but it is yet to be decided whether the work would be reallotted or would be completed by the civic body. This involves changing the flooring of the market for which digging was started in many parts of the market.

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