Chandigarh MC finds lapse in bank guarantee for electrical work, XEN warned

Sandeep Rana

Chandigarh, March 18

Close on the heels of a parking contractor submitting fake bank guarantees, the Municipal Corporation (MC) has now found that a contractor of electrical works has submitted a bank guarantee only for one year instead of mandated five years.

After the lapse came to light, Executive Engineer (Horticulture) Kuldeep Singh has been warned to be careful in future while performing his duties. He has been further told to obtain the bank guarantee from the agency as per terms and condition of the allotment.

According to information, the electrical work of Animal Birth Control Centre for stray dogs at Raipur Kalan was allotted to the city-based PK Enterprises on September 8 in 2020 for Rs 9.99 lakh with a bank guarantee of Rs 50,000 valid up to September 20, 2021.

Hence, the official order stated that he violated clause 11 of the terms and condition of the allotment. It was viewed as lapse on the part of the officer.

In November last year, the Chief Engineer asked Kuldeep Singh to explain his position.

The Executive Engineer replied that the agency had submitted a performance bank guarantee amounting to Rs 50,000 in the shape of fixed deposit receipt (FDR) valid till September 26, 2023. The agency has also submitted that the FDR shall further be extended for a period of two years. The final bill of the said agency will not be passed until the renewed bank guarantee is submitted by the agency. No financial loss is occurred to the Municipal Corporation on account of performance guarantee, he claimed.

Not satisfied with the reply, the MC warned him to be careful in future.