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Govt terminates PMGSY road contracts worth Rs 2,543.05 lakh over delay, blacklists contractor

Deputy CM reiterates zero tolerance for lapses, quality compromise

KI News by KI News
March 4, 2026
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JAMMU:  The government has terminated two major road construction contracts in Kathua, blacklisting the contractor for delays in work completion.

Deputy Chief Minister Surinder Choudhary said the contracts, awarded to M/s Puran Chand and Sons, Jammu, have been terminated due to the contractor’s failure to meet the deadlines despite repeated notices and extended opportunities.

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He said that the terminated projects included construction of road from Malhar to Marhoon (Package No. JK07-136, Phase X, Stage-I) and construction and maintenance of road from L031 Mahan to Banjar (Package No. JK07-219, Phase XII). Both the works had been allotted to M/s Puran Chand and Sons, Jammu.

He said that besides imposition of penalty the contractor has been blacklisted and debarred from participating in future PMGSY works for a period of one year.

An official order from the Office of the Chief Engineer PMGSY states that the contractor failed to mobilize adequate machinery, manpower and resources, leading to prolonged delays. Despite multiple notices, review meetings and assurances, progress remained unsatisfactory, impacting connectivity and public convenience in the affected areas.

In both the cases, the contracts have been terminated under relevant clauses of the Standard Bidding Document (SBD). Liquidated damages and penalties amounting Rs. 146.63 lakh in one project and Rs. 217.54 lakh in the other have been imposed.

The concerned Executive Engineer has been directed to recover the penalty amount from the pending dues, security deposits, performance securities and bank guarantees.

The Deputy Chief Minister said that fresh tendering for the balance works has been ordered to ensure early completion.  He stated that timely and quality execution of developmental works is non-negotiable for the government. He emphasized that public infrastructure must be completed within stipulated deadlines and in accordance with the prescribed standards.

The Deputy Chief Minister further cautioned that the erring contractors may face strict action, including blacklisting, if they fail to complete projects within the defined timeframe. He reiterated the government’s commitment towards ensuring accountability, transparency and accelerated development across J&K.

 

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