Aurangabad District Court will hear the case of Essel Groups’ Aurangabad City Water Utility Company Limited (ACWUCL) on charges of supplying contaminated water to the consumers.
Subhash Chandra-owned ACWUCL moved to the court after Aurangabad Municipal Corporation sent notice of intention of termination to the company.
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 795 crore water supply contract in 2014 under Public Private Partnership (PPP) model , according to municipal corporation committees and members ,ACWUCL have failed to complete the project within time 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.