Ahmedabad civic body pays Rs. 46 crores for Unfinished Housing Projects

Ahmedabad Municipal Corporation (AMC) will have to pay an additional Rs. 45.94 crore to hire a new contractor to complete the outstanding work as a result of two companies being placed on a blacklist for unfinished housing projects.

Two proposals worth Rs. 45.94 crore to the AMC were approved by the Housing Improvement and Urban Poor Housing Scheme Committee on Friday. Five years ago, the AMC contracted with different companies to handle two housing projects that it started in Motera and Thaltej. These companies were placed on a blacklist for not finishing.

An additional proposal that allowed a different contractor to finish these projects was approved, resulting in a Rs. 45.94 crore cost increase.

The chairman of the housing committee declared that the money will be recovered from the companies on the blacklist. Internal sources, however, indicate that it was unlikely that these funds would be recovered.

A tender worth Rs. 67.53 crore was approved by the AMC in 2019–20 for 1,520 houses in Motera–Koteshwar with infrastructure. The company Jyoti Infratech was placed on a five-year blacklist in June 2023 after failing to finish the project. New bids worth Rs. 104.36 crore were accepted.

An Rs. 11.75 crore tender for 1,190 houses was approved for the Thaltej area project. After Sanghani Infrastructure India Pvt Ltd failed to complete the project, a new proposal with a total tender of Rs. 20.86 crore was accepted.

For projects in Makarba, Sardarnagar, and Chandkheda, the housing committee approved extensions on Friday because the contractors were unable to meet the initial completion dates.