Contractor debarred for one year over alleged non-performance; performance securities ordered to be forfeited
Jammu, October 3: The Chief Engineer, PMGSY JKR RDA, Jammu, has terminated the contract awarded to M/s B&L Project Construction Pvt. Ltd. (JV) and M/s B.S. Builders for the routine maintenance of the Kainthgali Block Boundary Udhampur to Bariote (Part-I) road under PMGSY Package No. JK14-684, and ordered recovery of ₹432.60 lakh (₹4.326 crore) from the contractor.
According to the termination order dated September 29, 2026, the joint venture comprised M/s B&L Project Construction Pvt. Ltd. as the 51 per cent partner and M/s B.S. Builders as the 49 per cent partner.
The work, sanctioned under Regular PMGSY Batch-I, 2018-19, Block Panchari, District Udhampur, had a sanctioned cost of ₹21.1327 crore, while the work was allotted to the joint venture for ₹20.6736 crore. The allotted amount comprised ₹19.1184 crore for the construction component and ₹1.5552 crore for the maintenance component, with a stipulated completion period of 25 months.
The Chief Engineer, in the order, cited reports from the Executive Engineer, PMGSY Division Reasi, stating that repeated notices and directions had been issued to the contractor for expeditious execution of the work. However, the contractor allegedly failed to maintain the required pace of execution.
The order states that the contractor executed Bituminous (BT) work for only approximately two kilometres and thereafter stopped activities without any justified reason. Despite repeated reminders and directions, the contractor allegedly failed to resume BT work or undertake other essential components, including General Sub-Base (GSB) laying and protection works on the remaining stretch.
According to the department, the slow progress caused inconvenience to the general public and raised serious concern within the administration.
The order further records that the construction work was reported as completed on March 28, 2024, following which the contractor became responsible for routine maintenance of the road under the terms and conditions of the agreement. The department, however, alleged that the contractor subsequently failed to discharge its maintenance obligations and stopped maintenance activities.
Show-cause notices
The termination order refers to several communications issued by PMGSY authorities, including a termination recommendation from the Executive Engineer, PMGSY Division Reasi, and two show-cause notices.
One of the notices, Show Cause Notice No. PMGSY/Udh-II/R/2025-26/4856-59 dated February 14, 2026, was specifically mentioned in the order as having been published in Daily Excelsior on February 19, 2026.
The order also cites Show Cause Notice No. PMGSY/Udh-II/R/2025-26/4620-23 dated February 2, 2026, along with subsequent communications from the Superintending Engineer and Executive Engineer.
₹4.32 crore recovery ordered
As part of the action, the Chief Engineer imposed damages of ₹360.50 lakh on the contractor for alleged non-performance and breach of contractual obligations.
An additional 20 per cent penalty amounting to ₹72.10 lakh has also been imposed under Clause 43.4 of the Standard Bidding Document (SBD).
This takes the total recoverable amount to:
Estimated damages: ₹360.50 lakh
Additional 20% penalty: ₹72.10 lakh
Total: ₹432.60 lakh (₹4.326 crore)
L
The Executive Engineer, PMGSY Division Reasi, has been directed to recover the amount from the contractor’s pending dues, Security Deposits, Performance Securities, Additional Performance Securities, CDRs and Bank Guarantees.
The order further states that any balance amount remaining unrecovered shall be recovered from other claims, deposits, securities or payments due to the contractor under PMGSY within the Union Territory of Jammu and Kashmir.
One-year debarment
In another significant action, the B&L Project Construction Pvt. Ltd.–B.S. Builders JV has been debarred from participating in PMGSY tenders/works under JKR RDA for one year from the date of issuance of the order.
The Chief Engineer has also ordered that the Performance Security/Security Deposits shall stand forfeited in accordance with the provisions of the agreement.
Fresh tender for road maintenance
The Executive Engineer, PMGSY Division Reasi, has been directed to immediately initiate fresh tendering for routine maintenance of the road under Clause 43.4 of Part-I of the General Conditions of Contract of the SBD.
The order states that the fresh tendering is intended to safeguard the public interest and ensure proper upkeep of the road.
The termination order has been issued by Er. Purshotam Kumar, Chief Engineer, PMGSY JKR RDA, Jammu, and copies have been forwarded to the Financial Commissioner (Additional Chief Secretary), PW(R&B) Department, J&K; Superintending Engineer, PMGSY Circle Reasi-Udhampur; Executive Engineer, PMGSY Division Reasi; and both members of the contractor JV (KNC).
