No money released to M/S Qureshi Transport Company: RTC

New JK Roadways seeks similar concessions

Excelsior Correspondent

Srinagar Mar 1: The Jammu Kashmir Road Transport Corporation (JKRTC), today said that it has not released any amount to M/S Qureshi Transport Company that they have agreed to pay him out of a compromise deed.
“Till date JKRTC has not released any amount to the M/S Qureshi Transport Company out of compromise deed,” reads a statement issued by the Corporation in response to the Excelsior expose.
However, the Corporation last month sanctioned (No. JKRTC/GML/Sgr/862 dated 13-01-2024) over Rs 4.25 crore to be paid in instalments to the contractor.
“…however, the amount shall be disbursed in instalments to be paid between 1.12.2023 to 31.3.2024, and no further deduction shall be made from the bills of M/S Qureshi Transport Company on account of M.O, Trip Money and HSD,” reads the order.
The statement of the Corporation reads that they have sought the opinion of the Government Advocate as “suggested by the FA&CAO” for offering compromise to the Contractor.
“…on his (FA&CAO) suggestion a legal opinion was sought from the Govt Adv nominated by the Law Department,” reads the statement of the Corporation.
However, the FA&CAO had suggested that legal opinion should be sought from the Law Department through the administrative department and not Government advocate.
“However, considering the larger interest of the corporation & financial position, it is also suggested that before issuing the minutes the corporation may seek expert opinion of law department through the administrative department”, reads the suggestions of the FA&CAO.
“There shall be no flood gate, because the claim of any contractor was valid within the period of contract… The Hon’ble Arbitral Tribunal in its Judgment made it clear that the instant order cannot be used as a weapon against the JKRTC,” reads the statement issued by the Corporation.
However, another contractor “New JK Roadways” in its letter (Ref. No. NJKR/RTC dated 13-02-2024) who claims to be similarly placed has sought similar concessions as were given to M/S Qureshi Transport Company.
It may be mentioned here that the same concerns were raised by the General Manager Planning in his response to the minutes of the meeting issued by the JKRTC which were brushed aside by the JKRTC management.
“This will open the flood gate for previous contractors of the Corporation, who have supplied Trucks/Buses to meet the leftover demand of the Corporation against similar tenders and the corporation may have to pay huge amounts to other firms,” he further stated.
It may be mentioned here that a major scam surfaced in the RTC wherein the corporation has favoured a contractor by ordering reimbursement of commission to him.
M/S Qureshi Transport Company was allotted a contract by the JKRTC in September 2020 for supply of trucks and buses to the corporation for which it was charged commission on end freight rate.
Later the contractor approached the High Court in 2022 which appointed an arbitrator to resolve the issue. Instead of contesting the case the JKRTC agreed to charge the contractor basic freight rate.