J&K Govt Terminates ₹2,543 Lakh PMGSY Road Contracts in Kathua, Contractor Blacklisted

JAMMU: Taking strict action against delays in public infrastructure projects, the Jammu and Kashmir Government has terminated two major road construction contracts in Kathua district worth ₹2,543.05 lakh and blacklisted the contractor responsible for the projects.
Deputy Chief Minister Surinder Choudhary said the contracts were awarded to M/s Puran Chand and Sons, Jammu, but were terminated after the firm repeatedly failed to complete the work within the stipulated timelines despite several notices and extended opportunities provided by the authorities.
The cancelled projects include the construction of the Malhar–Marhoon road (Package No. JK07-136, Phase X, Stage-I) and the construction and maintenance of the L031 Mahan–Banjar road (Package No. JK07-219, Phase XII) under the Pradhan Mantri Gram Sadak Yojana (PMGSY). Both works had been allotted to the same contractor.
According to the Deputy Chief Minister, apart from imposing financial penalties, the government has blacklisted the contractor and barred the firm from participating in PMGSY projects for one year.
An official order issued by the Office of the Chief Engineer, PMGSY revealed that the contractor failed to mobilize adequate machinery, manpower and resources, resulting in significant delays in project execution. Despite multiple notices, review meetings and assurances from the contractor, the progress remained unsatisfactory.
Officials said the delays adversely affected road connectivity and public convenience in the concerned areas, prompting authorities to take decisive action.
In both cases, the contracts have been terminated under the relevant clauses of the Standard Bidding Document (SBD). The government has also imposed liquidated damages and penalties amounting to ₹146.63 lakh in one project and ₹217.54 lakh in the other.
The concerned Executive Engineer has been directed to recover the penalty amount from the contractor’s pending dues, security deposits, performance securities and bank guarantees.
Deputy Chief Minister Surinder Choudhary said the government has already ordered fresh tendering for the remaining work to ensure early completion of the projects.
He stressed that timely and quality execution of development projects is non-negotiable for the government, adding that public infrastructure must be completed within the prescribed deadlines and according to the required standards.
The Deputy Chief Minister also warned that contractors failing to complete projects within the stipulated timeframe may face strict action, including termination of contracts and blacklisting.