Babai Irrigation Project Issues 35-Day Ultimatum to Construction Firm for Recovery of Over 53 Million Rupees

Kathmandu. The Babai Irrigation Project has issued a 35-day ultimatum to a construction company to deposit over 53.3 million rupees into the government treasury for failing to complete work as per the contract agreement.

The project issued a notice on Baisakh 4, directing Aman Construction Company of Gulariya, Bardiya, to pay the specified amount.

According to the notice, the company must pay 53,342,096.7 rupees as government arrears. The project stated that despite previously issuing a letter on 2082 Chaitra 2 giving a 21-day deadline, the company has yet to deposit the funds.

The project has warned that if the amount is not deposited into the designated bank account and the original voucher is not submitted within the 35-day deadline, strict legal action will be taken.

The project stated that if the funds are not received within the stipulated time, the process to recover the amount as government arrears will be initiated through the Kumari Chowk and Central Tahasil Office in accordance with the Financial Procedures and Financial Accountability Act, 2076 and Regulations, 2077.

Four separate contract agreements were signed between the project and Aman Construction in the fiscal year 2077/78. However, after the company failed to perform as per the agreements, the contracts were terminated under Section 59 of the Public Procurement Act, 2063, and a decision was made to blacklist the company.

Although the construction company filed a case in the High Court against the project's decision, the court dismissed the writ. With the dismissal of the writ, the path has been cleared for the project to recover the additional costs incurred from completing the remaining work through other processes from the original construction company.