The Kannur Corporation has decided to renew the contract for the legacy waste disposal project at the Chelora dumping ground to the Pune-based Royal Western Project, under revised conditions.
The decision to renew the contract was taken at the council meeting held on Friday, amid corruption allegations and Vigilance inquiry against the deal with company. The decision comes in the wake of an audit by the Accountant General, which reportedly uncovered irregularities, leading to loss worth ₹1.77 crore to the Corporation.
Mayor Muslih Madathil said the Corporation opted for contract renewal on a request from the company, which had previously halted the project midway. Under the new agreement, the contractor is required to submit an additional performance guarantee of ₹3.74 crore and complete the project by May 31, this year.
The audit report had led to heated debates in the Corporation council. During the last session, Opposition councillors had reiterated their demand for a Vigilance inquiry, alleging irregularities in the award of contract.
The Mayor had assured that the Corporation would fully cooperate with the Vigilance department, which had already visited the Corporation office and collected relevant documents.
Published – March 01, 2025 02:21 am IST
