Rectify Medigadda damages at your cost, Ghose panel to L&T
Slams agency-authorities nexus for unlawful loot of public money
Hyderabad: Justice PC Ghose Commission has accused L& T company of obtaining a completion certificate from the authorities even as the Medigadda works, which it was to execute fully, remained incomplete. The commission, which investigated the irregularities in the construction of Kaleshwaram Lift Irrigation Project (KLIP), made it abundantly clear that it was the contract agency’s responsibility to complete all pending works, including those pertaining to defect rectification and restoration of the 7th Block of Medigadda barrage, at its own cost. L&T constructed Medigadda barrage, the flagship of the KLIP.
In its report, the commission said that: "L&T is not entitled to seek either the substantial construction completion certificate or the certificate of completion of works. It is held that the barrage works of Medigadda have not been completed and, for the reasons recorded in the report, the agency is liable to complete all the pending works, including defect rectification works and restoration works apart from restoration of the 7th block of Medigadda barrage, at its own cost".
Further, the Ghose report said that in case the agency fails to act in this regard, the project authorities shall get the said works done and recover the amounts incurred thereupon from the defaulting agency as per the terms of the contract and in accordance with law. The agencies for the construction of Annaram and Sundilla barrages are also held liable to rectify the defects at their cost since they had not attended the same during Defect Liability Period (DLP)
The commission said that totality of the facts and the analysis of the evidence led the Commission to the irresistible conclusion that the certificates of completion issued in respect of the Medigadda barrage were incorrect and unjustified.
“The defect liability period has not legally commenced as the structure was not complete in terms of the contract”, it pointed out holding that the contractor is liable to repair the damage in accordance with the contractual terms at his cost. The commission observed that the totality of the facts revealed clinching evidence and explicitly prove the fact that the project authorities and the agency were hand in glove with each other and acted with concerted malicious intention in pursuit of their unfair and ulterior motive to unduly benefit and make unlawful gains from the huge amount of public money expended on the construction of Medigadda barrage.
