Mohali Deputy Mayor red flags settlement among MC, pvt firm

  • | Tuesday | 20th August, 2019

Company needs to clear an outstanding amount of Rs 25 lakhTribune News ServiceMohali, August 19The Mohali Deputy Mayor, Manjit Singh Sethi, has sought a vigilance inquiry into an out-of-court settlement between the MC and a private firm related to outstanding dues. Sethi alleged that the civic body benefited the company through the above said move and caused a loss of around Rs 12 lakh to the government exchequer. The Deputy Mayor further alleged that the authorities also bypassed the MC House’s approval which was necessary for any such settlement. “Two months ago, the company had approached the MC for an out-of-court settlement following which an arbitrator was appointed. Around 10 days ago, the civic body filed a withdrawal application in the court following which the case has been withdrawn,” said Sethi.

Company needs to clear an outstanding amount of Rs 25 lakh Mohali, August 19 The Mohali Deputy Mayor, Manjit Singh Sethi, has sought a vigilance inquiry into an out-of-court settlement between the MC and a private firm related to outstanding dues. Sethi alleged that the civic body benefited the company through the above said move and caused a loss of around Rs 12 lakh to the government exchequer. The Deputy Mayor further alleged that the authorities also bypassed the MC House’s approval which was necessary for any such settlement. A complaint in this regard has been made to the Local Bodies secretary. Sethi alleged that the MC had outsourced advertisement related work to a private company in 2012. Later, under breach of the contract, the civic body asked for Rs 13 lakh in damages in 2014, while now the amount has reached around Rs 25 lakh. Sethi said the company had approached a court and challenged the MC’s decision. He said the court had also given its verdict in the favour of the civic body in 2016 and directed the firm to pay the amount with 18 per cent interest per annum. “Later, an appeal of the company was also rejected by the higher court,” he claimed. The Deputy Mayor said the MC had approached the court for attaching assets of the company to clear the outstanding amount and the court gave its verdict in the favour of the civic body. Later, a showroom was attached in Panchkula and a bank account of the company was also sealed, he said. “Two months ago, the company had approached the MC for an out-of-court settlement following which an arbitrator was appointed. Around 10 days ago, the civic body filed a withdrawal application in the court following which the case has been withdrawn,” said Sethi.

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