The Aurangabad Municipal Corporation (AMC) on Thursday terminated the contract of Essel Groups’ Aurangabad City Water Utility Company Limited (ACWUCL) on the charges of supplying contaminated water to the consumers. According to the reports, the contract in is worth Rs 795 Crore.
The hearing in this case in will take place on September 5.
The municipal authorities had earlier threatened the utility company of a legal action if it failed to discharge its responsibility and does not improve the quality and quantity both.
The utility company was handling the city’s water supply system, including water pumping from Jayakwadi dam, water treatment at filtration plants, supplying it to the city and repair as well as maintenance work.
According to reports, the municipal body had to pay crores to the Aurangabad City Water Utility Company Limited (ACWUCL) under various heads.
However, looking at the current scenario wherein the company is allegedly avoiding repair and maintenance works of the supply line, the municipal authorities have decided to take a strict action against it.
The ACWUCL was given water supply contract in 2014 under Public Private Partnership (PPP) model , according to municipal corporation committees and members of ACWUCL have failed to complete the project within time the given frame. It has been alleged that ACWUCL has not even completed pipeline project mentioned in contract within the set deadline.
Earlier, Essel Group had also lost electricity distribution projects in two cities of Madhya Pradesh due to Poor management and distribution .