JAMMU, Oct 3: The Chief Engineer, PMGSY JKR RDA, Jammu, has terminated the contract awarded to the joint venture of M/s B&L Project Construction Pvt. Ltd. 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. The department has also ordered recovery of Rs 432.60 lakh, or approximately Rs 4.326 crore, from the contractor over alleged non-performance and breach of contractual obligations.
According to the termination order issued on 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 was sanctioned under Regular PMGSY Batch-I, 2018-19, for Block Panchari in District Udhampur. The sanctioned cost of the project was Rs21.1327 crore, while the work was allotted to the joint venture for Rs 20.6736 crore. The allotted amount included Rs 19.1184 crore for the construction component and Rs 1.5552 crore for maintenance, with a stipulated completion period of 25 months.
The Chief Engineer cited reports submitted by the Executive Engineer, PMGSY Division Reasi, stating that repeated notices and directions had been issued to the contractor for expediting the work. However, the contractor allegedly failed to maintain the required pace of execution. The order states that bituminous work was carried out over only around two kilometres, after which the contractor stopped further activities without any justified reason. Despite repeated reminders, the contractor allegedly failed to resume the bituminous work or undertake other essential works, including General Sub-Base laying and protection works on the remaining stretch.
The department stated that the slow progress of the work caused inconvenience to the general public and raised serious concerns regarding the contractor’s performance. 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 as per the terms and conditions of the agreement. However, the department alleged that the contractor subsequently failed to fulfil its maintenance obligations and stopped maintenance activities.
The termination action followed several communications issued by PMGSY authorities, including a termination recommendation from the Executive Engineer, PMGSY Division Reasi, and two show-cause notices. The order specifically refers to Show Cause Notice No. PMGSY/Udh-II/R/2025-26/4856-59 dated February 14, 2026, which was published in Daily Excelsior on February 19, 2026. It also cites Show Cause Notice No. PMGSY/Udh-II/R/2025-26/4620-23 dated February 2, 2026, along with subsequent communications issued by the Superintending Engineer and Executive Engineer.
As part of the action, the Chief Engineer imposed damages of Rs 360.50 lakh on the contractor for alleged non-performance and breach of contractual obligations. An additional 20 per cent penalty amounting to Rs 72.10 lakh was imposed under Clause 43.4 of the Standard Bidding Document. Together, the damages and penalty bring the total recoverable amount to Rs432.60 lakh, equivalent to approximately Rs4.326 crore.
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 provides 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.
In another significant action, the B&L Project Construction Pvt. Ltd.–B.S. Builders joint venture has been debarred from participating in PMGSY tenders and works under JKR RDA for a period of one year from the date of issuance of the order. The Chief Engineer has also directed that the performance security and security deposits of the contractor shall stand forfeited in accordance with the provisions of the agreement.
The Executive Engineer, PMGSY Division Reasi, has also 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 Standard Bidding Document. The fresh tendering process has been ordered with the stated objective of safeguarding public interest and ensuring proper maintenance of the road.
The termination order has been issued by Er. Purshotam Kumar, Chief Engineer, PMGSY JKR RDA, Jammu, with copies 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 joint venture.