HMDA CONTESTS IDLING CHARGES TO BE PAID TO DCI

The Hyderabad Metropolitan Development Authority (HMDA) challenged the commercial court’s directions passed in 2018 to pay idling charges to the Dredging Corporation of India Ltd (DCI) for the works carried out in

1986 in Hussainsagar lake, in the High Court on Thursday.

However, the appeal filed by the HMDA was beyond the limitation time and it requires approval by the court to get admission. If the DCI objects to the delay, then the HMDA must explain why there was a delay of 371 days in filing the appeal. If any adverse orders passed, then the HMDA is bound to pay around `93 lakh on account of idling charges and interest amount at 15 percent per annum since 1993 to the DCI. After the execution amount was paid, DCI claimed the idling charges in 1993.

The standoff between the HMDA (HUDA in 1990s) and the DCI has been continuing since 1993, over the agreement made between them on 26 December 1986 to dredge Hussain Sagar at Buddha Purnima and Sanjivaiah Park areas. The idling charges and demolition charges had to be paid to the dredgers by the HUDA if the machinery was made to lay idle due to any unforeseen thing happened. With some breakups and gaps, either with faults of HUDA or DCI, the work was completed on 22 May 1989. Whereas, the actual time limit was within

12 months from the date of agreement. The DCI says it is asking money for the work it carried out here and the delay in taking up works at Sanjivaiah Park as it was solely on account of the inaction of the HUDA. The matter was referred to an arbitrator who ruled in favour of the DCI. The matter was also referred to a civil court in Hyderabad which, in November 2018, also upheld the arbitral award and said the HMDA should pay the money to the DCI.

On Thursday, the court sought the DCI’s stand as to whether it objected or not on delay in filing the appeal by the HMDA.