Contract Clash: L&T and K-RIDE Dispute Derails Bengaluru Rail Project

Larsen & Toubro's termination of two contracts for the Bengaluru Suburban Rail Project has sparked controversy. K-RIDE, a joint venture between Karnataka's government and the Ministry of Railways, claims L&T violated agreement conditions by making unreasonable demands. The dispute is now with the Amicable Settlement Committee.

In a move that has stirred the ongoing Bengaluru Suburban Rail Project, Indian conglomerate Larsen & Toubro has terminated two crucial contracts. The dispute centers on the alleged violation of agreement conditions, according to officials from K-RIDE, the project's managing body.

The joint venture, comprising the government of Karnataka and the Ministry of Railways, alleges that L&T unilaterally ended contracts for Corridor-2 and Corridor-4, citing unreasonable demands made by L&T. These demands included revising contract prices mid-term and altering the contract format, contrary to agreed terms, as per K-RIDE's press release.

With the work progress largely incomplete and significant delays blamed on L&T's management inefficiencies, K-RIDE has escalated the issue to the Amicable Settlement Committee. L&T, however, has not publicly responded yet to the allegations.

(With inputs from agencies.)