Turkish firm—working on Kanpur metro project—flees with ₹80cr dues
What's the story
The Turkish construction company Gulermak, working on the underground section of a metro project in Kanpur, has reportedly fled the city, leaving behind unpaid dues of ₹80 crore.
The firm had not paid 53 contractors for nearly 10 months. The matter was compounded further after protests erupted over Turkey's involvement in the India-Pakistan conflict.
After Gulermak's disappearance, the contractors approached the Uttar Pradesh Metro Rail Corporation (UPMRC) for help. However, no action was taken by UPMRC officers, India Today reported.
Complaint filed
Affected firms submit complaint to District Magistrate's office
Subsequently, nine representatives of the affected contracting firms submitted a written complaint to the District Magistrate's office. They demanded payment for their pending dues from Gulermak.
According to the contractors, all of the top officials of this Turkish company have since fled the city, and when approached over the phone, they offered evasive responses and evaded the matter.
Payment demand
Contractors demand release of pending dues
The contractors have demanded the release of dues, which include ₹3.70 crore from Metro Marble and smaller amounts from other firms.
The work on the metro project was a joint venture of Indian company Sam India and Gulermak, which gave work to 53 sublet firms.
The company got the work done but left a significant amount of money unpaid and made small payments in its place.
Radiant Services contractor Gajendra Singh said only 50% of the payment has been made.
Reserve payment
UPMRC holds 5% payment in reserve for contractors
Panchanan Mishra, Joint General Manager (Public Relations) at UPMRC, told India Today that Gulermak had completed work on four stations of Corridor One in Kanpur.
He mentioned the completion but did not provide specific details on the payment issue.
Mishra also said that a 5% payment of the total contract value is kept in reserve by UPMRC.
This amount is typically released after a year, but it could be given to contractors if they are not paid by Gulermak.