Shinde Government Faces Legal Notice for ₹1.58 Crore Dues in Davos
- Posted on October 5, 2024
- News
- By Arijit Dutta
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The Eknath Shinde-led Maharashtra government is facing a legal notice from Swiss company SKAAH GmbH for non-payment of ₹1.58 crore for services during the World Economic Forum in Davos. The MIDC allegedly owes this amount despite having previously paid ₹3.75 crore. The situation has drawn criticism from opposition parties, who claim it reflects government overspending and could harm Maharashtra's reputation among international investors.
The Maharashtra government, led by Chief Minister Eknath Shinde, is facing a legal notice from a Swiss hospitality company over an alleged non-payment of ₹1.58 crore for services rendered during the World Economic Forum (WEF) held in Davos. The notice, dated August 28, claims that the Maharashtra Industrial Development Corporation (MIDC) has failed to settle the dues, despite having previously paid ₹3.75 crore.
The Swiss contractor, SKAAH GmbH, provided evidence, including invoices for services offered during the WEF, which took place from January 15-19. The notice was sent to the MIDC, the Chief Minister’s office, and other relevant officials, emphasizing that the unpaid amount is the balance due after prior payments.
MIDC CEO P. Velrasu stated he was unaware of the notice but assured that the corporation would review the vouchers and take appropriate action. In response to the allegations, Industries Minister Uday Samant remarked that the government had not overspent, attributing the criticisms to opposition parties, including the NCP (SP) and Shiv Sena (UBT).
NCP (SP) MLA Rohit Pawar condemned the government’s handling of the situation, suggesting it could harm Maharashtra's reputation and deter international investments. The Swiss firm's notice also pointed out that the delegation exceeded the number of individuals initially agreed upon for service provision, yet the company accommodated all requests.
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The legal notice further alleges that the delay in payment has adversely affected the Swiss company's credit score and overall financial standing. It warns that unresolved payment issues could jeopardize international relations between India and Switzerland, highlighting the need for a prompt resolution to avoid potential disputes.