Kiratpur-Manali four-lane work comes to standstill due to payment dispute between 2 companies

 Not paid for 18 months, local contractors seek Nitin Gadkari’s intervention

MANDI: The Pandoh-Takoli bypass project, part of the strategically crucial Kiratpur-Manali four-lane project, has been at a standstill for the past three months due to an ongoing dispute between two companies.

The development has severely impacted local contractors, who have not been paid for their work and are now struggling under heavy debt. The contract for the Pandoh-Takoli project was initially awarded to Shapoorji Pallonji Company, which then subcontracted the work to Afcons.

The contractors working on this project are under Afcons, making it their duty to ensure timely payments. However, Afcons has failed to pay the contractors for the past 18 months, claiming that they have not received the necessary funds from Shapoorji Pallonji. Despite their claims of having made all possible payments from their own resources, Afcons now states they lack the funds to settle the outstanding dues.

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On the other hand, Shapoorji Pallonji insists that they are fulfilling their financial obligations on time and that it is Afcons’ responsibility to pay the contractors. This deadlock has left over three dozen local contractors in dire straits, with outstanding payments exceeding Rs 50 crore.

Frustrated and desperate for resolution, these contractors have sent a letter to Union Minister Nitin Gadkari, seeking his intervention. They have even submitted copies of this letter to officials from Afcons, Shapoorji Pallonji, NHAI Project Director and the Mandi Deputy Commissioner and the Superintendent of Police, urging immediate action.

Local contractors like Rot Ram, Anil Soni, Mahendra Pal and others revealed that they have not received full payments for nearly two years. The past three months have been particularly difficult, with work completely halted and no payments made. With loans taken for machinery still unpaid and wages for labourers pending, these contractors are now heavily indebted.

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They have warned that if the company management does not release the payments within a week, they will stage a road blockade, holding both companies accountable for the resulting disruption.
During a meeting on Thursday with officials from both Afcons and Shapoorji Pallonji, the contractors did not receive any clear answers.

Afcons’ HR head Gyan Singh stated that payments could take at least two more months, while Shapoorji Pallonji’s team leader Adarsh Panotra distanced the company from responsibility, asserting that paying contractors is not their obligation.

The meeting was attended by over 30 contractors, including Rot Ram, Anil Soni, Mahendra Pal, Rajendra Kumar, Vikrant Sharma, Rohit, Devendra Kumar, Inder Singh, Gagan Kumar, Narendra Kumar, Vijay Kumar, Tulsi Ram, Mahesh Kumar, Leela Prakash, Bharat Kumar, Hem Raj, Bhushan Thakur, Anand Kumar, Tejendra Kumar, Santosh and Deepu Sharma.