Bilaspur MFC dispute, Railway issues 8 crore notice to IRCON

Prateek Chauhan. Raipur/Bilaspur. The tender for the Multi Functional Complex (MFC) located at Bilaspur Railway Station was terminated in January last year (2023). But after termination it was not vacated and the matter went to court. Now due to the loss suffered by the Railways in this matter, the officials of Bilaspur Railway Division have handed over a notice of about Rs 8 crore (according to sources. This amount may be more) to IRCON.

Lalluram had earlier also published a news on this issue. In which it was told that IRCON and railway officials are face to face in getting the said building vacated. The responsibility of who will vacate it has not been decided between the two. This is the reason that CG Engineering Company which has taken MFC is getting the benefit of this.

According to information from railway sources, CG Engineering Company has not paid even a single rupee to the railways since December 2019. Whereas according to the tender conditions, the company had to pay around 3 lakh rupees per month. Which has increased further later as per the tender conditions.

What did the Railways say in the notice given to IRCON?

According to railway sources, in the notice given by the railway to IRCON, it is said that IRCON ISL is responsible for the management and commercial use of MFC Bilaspur. IRCON ISL had allotted the work of operation and management of MFC to CG Engineering Company on a lease of 15 years. On the basis of this contract, the possession of MFC Bilaspur was given to CG Engineering Company and along with this, the right to commercial use of the MFC building was also given to CG Engineering Company.

Due to non-payment of license fee, IRCON ISL terminated its sub-lease agreement with CG Engineering Company on 5th January 2023 and cancelled the possession of MFC Bilaspur and submitted an application to the state authority to vacate the building.

As per Section 144 of the Indian Railway Act, it is mandatory for any person to obtain a license from the railways to carry on any business in the railway premises. In the present case, no license or permission was granted by IRCON or the railways to CG Engineering Company after the expiry of the sub-lease agreement, but CG Engineering Company continued to carry on unauthorized business through the MFC building. It was the sole responsibility of IRCON ISL to stop this business activity.

After the end of the sub lease agreement, no effort was made to stop the commercial use of the MFC building of IRCON ISL, due to which the Divisional Railway Administration Bilaspur has suffered a loss of crores of rupees (about 8 crores, this amount can be even more) hence ensure payment of the said amount within 15 days. Otherwise, the MFC building will be confiscated and the amount of loss will be adjusted on the basis of the current market value of this building.