MEGA vendors continue protests against non-payment of dues

MEGA distributed PO worth approx Rs 300 cr for supply of Earth Filling Material to be dumped at MEGA's roughly 700,000 sq mts Test Track Site, at Motera in Gandhinagar

With dues worth roughly Rs 80 crore still pending from the Metrolink Express between Gandhinagar and Ahmedabad (MEGA) Company Ltd., the MEGA Vendor Welfare Association (MVWA) held rallies to protest against the same.

Despite holding similar protests in November last year, the association has hardly seen payments worth Rs 20 crore being made by the nodal agency that is managing the metro rail project in Ahmedabad.

"We have even written a letter to the Gujarat chief minister Narendra Modi but in vain. We may now seek the legal course since only 20-25% of the dues have been paid," said Kirit Faldu, president of MVWA. Of the total 44 MEGA vendors, around 30 vendors are members of the association.

According to the association, MEGA had distributed purchase orders (PO) worth approx Rs 300 crore for the supply of Earth Filling Material, which was to be dumped at MEGA's roughly 700,000 sq mts Test Track Site, at Motera in Gandhinagar.

"With each of the PO worth Rs five crore and in 100,000 tonnes, the order was to be completed in a short span of 90 days, leaving each of the suppliers to arrange for 44 dumpers daily with a capacity of 30 tonnes each to dump material worth over Rs 6.66 lakh. We were required to work continuously for 75 days per 24 hour working day," said Jatin Bhayani, chairman of MVWA.

However, after making all advance payments to material suppliers and transporters, the vendors have still not been paid in full by MEGA, the association said. Of the total PO worth Rs 300 crore put out by MEGA, MVWA member vendors submitted a bill of Rs 123 crore, out of which only Rs 85.22 crore worth payment has been made so far by MEGA, MVWA alleged. In its other allegations, the association stated that several cheque issued in September 2013 by MEGA bounced.

MEGA officials could not be contacted despite several attempts. However, a senior state government official stated that things have slowed down due to change over in the management. Post exit of former bureaucrat Sanjay Gupta, a new management took over at MEGA led by Manjula Subramanian as chairman, IP Gautam as vice chairman and Vijay Nehra as chief executive officer of MEGA.

The association also alleged that apart from non-payment of dues, MEGA has also been cancelling purchase orders citing lack of authenticity in the documents. "Moreover, MEGA now wants vendors to get environmental clearance certificate, for continuation of the purchase order, which actually falls in the scope of MEGA. We, on the other hand, are just intermediaries between quarry owners and MEGA the actual users," Bhayani added.

MVWA alleged that the nodal agency for the metro project has "verbally" said the site where the vendors are dumping material does not belong to MEGA.

"Hence, if MEGA cannot pay, then how or why did they release cheque earlier. Also, if the site does not belong to them, then what about the hundreds of crore of rupees worth material being dumped by us and part payments made by MEGA? MEGA also does not answer who is going to compensate for the losses incurred by each and every vendor, for the advances given to the quarry owners and the hired dumpers," he added.