MUMBAI: In an embarrassment for the Maharashtra government, its industry promotion body, the Maharashtra Industries Development Corporation (MIDC), has been accused of not paying bills amounting to ₹1.58 crore incurred on accommodation and food for a delegation led by chief minister Eknath Shinde to Davos for the World Economic Forum (WEF) in January. The state government and external affairs ministry of the central government have received a notice from the hospitality contractor for the recovery of the outstanding amount.
The notice sent by SKAAH GmbH, on August 28, stated that MIDC paid ₹3.75 crore of the total bills but the balance amount of ₹1,58,64,625 remained unpaid. The notice said that the bills were outstanding despite the Swiss firm submitting vouchers for its hospitality services during the WEF convention from January 15-19. The notice is addressed to the chief minister’s office and external affairs minister S Jaishankar apart from MIDC.
The notice was posted on social media website X by NCP (SP) MLA Rohit Pawar, who remarked that this could spoil Maharashtra’s image in the WEF. “The bills against the dining and drinking are pending and has resulted in the company sending a notice to the government. The Maharashtra government’s shameless act may lead to the defame to the state on an international forum known for the investment (sic),” Pawar posted.
When questioned, MIDC CEO P Velrasu said he was not aware of the legal notice but added that the bills would be paid if they were in place and vouchers were supplemented with proper documents. “In that case, they will be settled at the earliest,” he said. “The bills are in dispute and a legal procedure has to be followed.”
State industries minister Uday Samant said they had received the notice and their advocate would reply to it. “The bills are disputed and inflated, and we have sought an explanation on them,” he said. “It is not binding on us to pay the bills just because they have raised them. The undisputed bills have been paid. Our advocates will decide whether to pay the bills. The contractor has got a political guru ahead of the election and the guru could be one who has put the posts on X.” He was seemingly referring to Rohit Pawar, the grandnephew of NCP (SP) chief Sharad Pawar.
The 10-member delegation headed by Shinde comprised industries minister Samant and officials from the chief minister’s office, industries department and MIDC. According to officials, apart from the official delegation, there were other MIDC officers and political leaders accompanying the delegation. The dispute over the bills and vouchers was owing to overspending on services on more people than agreed upon.
The notice served by Pune-based legal firm Juris Wiz, on behalf of SKAAH GmbH, states, “Even after being provided with specific information and agreeing on a certain number of officials visiting, the number was exceeded, despite which deviation our client proceeded in delivering all specified services. During the visit, several additional services were provided which were not included in the services previously agreed upon. They were indulged due to the last-minute requirements specified by officials attending the WEF. Our client accommodated the additional demands too and raised updated invoices and bills.”
The notice, which threatens a lawsuit, states that despite SKAAH GmbH making consistent efforts for the release of the outstanding amount, the response from MIDC has been persistently vague and lacking substance.
The notice says that MIDC repeatedly demanded all sorts of documents from the Swiss firm from January to August. It emphasises that the delayed payment has caused “significant monetary loss to our client [and] to the individuals who worked for them, causing harm to their livelihood. The MIDC [is] hereby held liable to pay the total outstanding along with the interest @18% from the date of this notice, along with the notice fee of ₹50,000 to our client within 15 days… [If there is] further failure to make the payment, our client shall have all the right to proceed with a suitable lawsuit against MIDC and its representatives before the competent authority in Switzerland or in India.”
The notice further states that the issue is “impacting international relations between India and Switzerland”.