Realty firm for AIIMS Bhopal moves HC seeking release of BGs under Aatma Nirbhar scheme

It said JMC sought for release of its bank guarantees pursuant to the Aatma Nirbhar Bharat, however, the AIIMS Bhopal did not take any step regarding this and did not even respond to the various mails. Not getting any response from the authorities despite the government guidelines and circulars, the company said it approached the high court for the relief..

The Delhi High Court has sought the Centre's reply on a plea by a realty firm, involved in constructing AIIMS Bhopal, seeking release of its bank guarantees (BGs) of over Rs 30 crore pursuant to the Aatma Nirbhar Bharat Abhiyaan. Justice V Kameswar Rao issued notice to the Ministry of Health and Family Welfare asking it to file the response within four weeks on the petition by JMC Projects (India) Ltd.

The court, which heard the matter through video conferencing, listed the plea for further proceedings on September 16. Additional Solicitor General Chetan Sharma and Central government standing counsel Ripu Daman Bhardwaj represented the Centre in the matter.

On May 12, Prime Minister Narendra Modi had announced Aatma Nirbhar Bharat Abhiyaan, a special economic package of Rs 20 lakh crore for making the country self-reliant in the face of tough competition in the global supply chain as also to help in empower the poor, labourers, migrants adversely affected by the COVID-19 pandemic. To support the real estate sector, it was stated that an extension of six months will be given on registration and completion dates of all registered projects expiring on or after March 25, 2020 without individual applications, which can be further increased by three more months at the discretion of the regulatory authorities. Partial BGs will also be released by government agencies to ease cash flows, it was announced.

The court, in its July 23 order, recorded the submission made by advocate Manoj Kumar Singh, representing the petitioner company, that the validity of the milestone bank guarantee of Rs 7.63 crore which is expiring on July 31 this year shall be extended till September 30, 2020. The company has given three BGs of Rs 12.71 crore, Rs 12.71 crore and Rs 7.63 crore to the authorities. The company, in its plea filed through Singh and Associates, said that on August 12, 2010, it had entered into a contract with the Ministry of Health and Family Welfare for construction of AIIMS Hospital Complex at Bhopal – Package II.

The commencement and completion dates were September 10, 2010 and September 9, 2012, respectively. Although the virtual completion certificate has been issued only in October 2019, the hospital has been functional since January 2013, the plea claimed. "Presently, the project is under the defect liability period of 12 months. JMC has already raised its claim of more than Rs 140 crore, which is under dispute resolution process," it said.

It said that with the outbreak of COVID-19, a nationwide lockdown was imposed in March and considering the deep economic impact of the pandemic, the government introduced several policy decisions to mitigate the negative impact of the coronavirus. It added that the Ministry of Finance also issued two circulars which provide for pro-rata release of bank guarantees provided by the contractor and its aim is to provide sufficient liquidity in the market so that the economy can sustain.

"The petitioner as soon as being aware of the situation, wrote various communications to the respondent (authorities) inter alia intimating the respondent about the COVID-19 and its impacts," the plea said. It said JMC sought for release of its bank guarantees pursuant to the Aatma Nirbhar Bharat, however, the AIIMS Bhopal did not take any step regarding this and did not even respond to the various mails.

Not getting any response from the authorities despite the government guidelines and circulars, the company said it approached the high court for the relief..

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)