In a decisive move to curb revenue losses from stalled infrastructure, the Trichy City Corporation council on Monday blacklisted two private contractors and levied hefty penalties totalling ₹1.8 crore. The action targets firms responsible for prolonged delays in key Smart City Mission projects, barring them from future civic works.
Contractors Face Financial Penalty and Blacklisting
The council passed formal resolutions against the firms for failing to complete works at the Puthur air-conditioned (AC) mall and the Marakkadai commercial complex on WB Road. Corporation officials confirmed that the recovered penalty amount would be utilised to complete and operationalise both stalled facilities.
One of the penalised firms, Sivasakthi Constructions from Kanchipuram, was entrusted in February 2021 with building a commercial complex at the Marakkadai overhead water tank campus. The company has been fined ₹59 lakh and blacklisted. Although the main structure was completed and commissioned in July 2024, the critical work of installing lifts was left unfinished. This omission has rendered the second and third floors unusable for rental purposes. Officials noted that the contractor failed to respond even after being asked for an explanation.
Incomplete Projects and Mounting Revenue Losses
Similarly, P&C Projects Pvt Ltd of Erode was hit with a ₹1.2 crore penalty for incessant delays in completing the Puthur AC mall. Originally proposed in 2019 at a cost of ₹20.2 crore, the project remains incomplete. Officials revealed that only 95% of the work was finished, even four years after the contract period had lapsed.
"Even after cancelling the first floor from the original proposal, the AC mall remains incomplete. The blacklisted contractors cannot take up projects under the municipal administration department anywhere in Tamil Nadu," Mayor Mu Anbalagan told The Times of India. Corporation officials stated the penalty amounts would be recovered from the security deposits submitted by the contractors.
Commissioner L Madhubalan assured that the two facilities would be opened for public use within a month, with the penalty funds being used to make them operational. The civic body estimates it is losing around ₹22 lakh every month in potential revenue due to delays in commissioning various Smart City projects.
Broader Review of Smart City Assets
In a related development concerning Smart City projects, the corporation also cancelled the agreement awarded for the multi-level car parking (MLCP) facility on WB Road. Officials said the civic body now plans to outsource its operations under a 60:40 revenue-sharing model (Corporation: private) with an agency equipped to manage MLCPs using modern technology.
While welcoming the strict action against the contractors, councillor LIC Shankar (Ward 20) pointed out that several other Smart City assets remain underutilised. "The mini market on EB Road and vacant shops at the renovated Chathiram bus stand have been lying unused for years. Solutions are needed for these projects too," he highlighted. This issue of stalled projects was earlier highlighted in a TOI report titled ‘Smart city not so smart as projects hit a wall' on December 9.
The corporation's firm stance signals a shift towards greater accountability for contractors and a push to finally deliver long-promised urban infrastructure to the public, while stemming significant financial losses.
