HMRL letter catalyses cold war with L&T

City metro body fires back after L&T seeks `4.85 crore

The cold war between the builders of Metro Rail has deepened further, with Hyderabad Metro Rail Limited writing a strong-worded letter to L&T regarding its claim for `4.85 crore along with interest of `4.85 crore along with interest. The claim is “incorrect, baseless and unacceptable,” HMRL managing director N.V.S Reddy wrote to his L&T counterpart Shivanand Nimbargi.

Mr Reddy wrote that the government had “advised” L&T to stop making “baseless claims”. L&T, the concessionaire of Hyderabad Metro Rail, had written to HMRL requesting that it be paid `4.85 crore towards work at the Alugaddabavi, Chilkalguda, Oliphenta, Begumpet and Malakpet road over bridges which it said it had carried out on behalf of the government and HMRL.

In reply, the HMRL wrote that the claim was “incorrect, baseless, and unacceptable” and said that the question of payment of interest did not arise. HMRL said that it had responded and clarified several times to L&T that it was the obligation of the concessionaire to obtain as well as keep in force and effect necessary approvals from the authorities concerned and make payments levied by such authorities including the railways.

HMRL said the TS had fulfilled its obligations by procuring permission from the railways, and said that the payment was not due from the state government. HMRL said that the government was “under no obligation to make payments” as claimed by L&T. Mr Reddy wrote: “The concessionaire has been advised many times to desist from making baseless claims especially in correspondence with third parties and also to abstain from indulging in this matter”.

HMRL said, “The concessionaire is unnecessarily continuing to make false claims instead of performing its obligations as per concessionaire agreement.”

HMRL made it clear to L&T that the concessionaire “may note that further unnecessary correspondence” in relation to the demand of reimbursement of charges or the interest on such amounts shall not be entertained.