Karnataka govt in a fix as contractor claims Rs 5,219 crore relief for Rs 6.6 crore work

BENGALURU: A court in Koppal has issued an arrest warrant against the chief secretary of the state based on the petition of an out-of-state contractor who had carried out work on a hanging bridge at Anegundi in Koppal district. The work was awarded at a cost Rs 6.6 crore, but the contractor has sought relief of Rs 5,219 crore along with interest.

In 1993, the foundation was laid for the hanging bridge across Tungabhadra river neare Anegundi in Gangavathi taluk. The NABARD had also approved aid of Rs 4.12 crore under the RIDF-2 scheme for the project. The project tender was awarded to Hyderabad-based B V Subbareddy and Sons at a cost of Rs 6.62 crore and work was taken up in 1997.

However, even as the work was in progress, Hampi was declared a World Heritage Site in 1999 and work on the hanging bridge was suspended. After the state government brought pressure and the Centre intervened, a UNESCO team approved completion of the bridge in 2005. However, the contractor had not met the tender terms including getting the technical design from experts.

During the construction of the remaining 24-metre stretch, the bridge collapsed on January 22, 2009 while pouring concrete, leading to the deaths of eight workers and injuries to 41 people. The PWD found the contractor to be negligent and imposed a fine of Rs 5.95 crore on the firm.

In 2019, the contractor approached a court in Gangavathi claiming relief of Rs 7 crore and the Koppal district cour ruled on February 20, 2021 awarding relief of Rs 5.64 crore with 18 per cent interest. However, the state government contested the order before the Dharwad bench of the Karnataka high court. The contractor again approached the Koppal district court which enhanced the compensation to Rs 7 crore with an interest of 24 per cent.

On July 29, 2021, the contractor had claimed from the government Rs 2,351.35 crore citing revenue loss (15 pc), annual interest (15 pc) overhead charges (25 pc) and and calculated the loss under the Hudson formula along with 24 per cent interest awarded by the court. This was hiked to 2,959.36 crore on June 15, 2022, Rs 3,033 crore on July 21, 2022, Rs 3,782.68 crore on May 29, 2023, Rs 4,012 crore on August 21, 2023 and Rs 4,645.59 crore on September 24, 2024.

Since the relief awarded by the Koppal district court was huge, the government did not act on it. In the meantime, the contractor filed a fresh affidavit in the court on September 5, 2024, seeking Rs 5219.76 crore as relief.

The Public Accounts Committee, which went through the case details, found that the police had not filed any case against the contractor for negligence and the government had made no effort to recover the penalty imposed after the bridge collapsed. It has now recommended that the chief minister, alowing with the home minister and the public works minister, convene a meeting to thrash out the issue.