Madhucon Projects Ltd said today that the World Bank has debarred it from participating in the projects aided by the multilateral funding agency for two years, reducing the initial period.
In a BSE filing, the company said: "The World Bank has temporarily debarred Madhucon Projects from participating in World Bank aided projects for a period of three years due to alleged negligence of its project staff in Lucknow-Muzzafarpur Highway projects which constituted a sanctionable practise as per the World Bank sanctions guidelines."
The filing was in response to clarification sought by the bourses from Madhucon Projects on media reports which said that "World Bank debars Madhucon Projects for two years".
The company said: "Mudhucon challenged the same before the sanctions Board of World Bank at Washington, wherein, after a personal hearing, vide decision dated October 26, 2017 Madhucon was exonerated of all allegations except the one pertaining to negligence while claiming two material advances."
The board, the company said, reduced the period of debarment to two years.
However, this decision was based on consideration of material supplied by the World Bank after the hearing, without serving a copy to Madhucon, on the basis of which the company has filed its representations before the sanctions Board seeking review of its decision, as the penalty imposed is grossly disproportionate, the company said.
"Thus the case is presently subjudice and hence the non- disclosure to the exchange, as of now," it said.
The decision will not have any material effect on the company as its order position for the next three years is full to its existing capacity and Madhucon Projects is not at all dependent on World Bank aided projects for its revenues.
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