Karnataka High Court orders BBMP to pay Rs 10-crore dues for pandemic medical services
Vijayalakshmi Diagnostics Private Limited approached the court for the recovery of Rs 5.8-crore dues from the BBMP, to which the company supplied RT-PCR testing services in 2020-2022. The court observed that the facts were similar to another case, already decided, involving BGS Global Institute of Medical Science, where dues of Rs 4.5 crore were payable for providing 24 x 7 RT-PCR services.
The BBMP argued that the Covid inquiry commission–set up to examine irregularities in the pandemic management–had rejected the company's request to pay the bills.
BGS Global Institute, however, contended that their services and the payment were not part of the subject matter of the inquiry, led by retired judge Michael Cunha.
The court observed, 'It is an undisputed fact that the claim of the petitioner…is towards non-payment of dues in relation to RTPCR tests conducted by the petitioner, which are clearly not the subject matter of the enquiry before the Covid Enquiry Commission. Under these circumstances, I am of the view that no reliance can be placed upon the said order dated 27.10.2023 passed by the Covid Enquiry Commission by the BBMP in order to avoid its undisputed liability to pay the pending dues in favour of the petitioner, who would be entitled to recover the same from respondent No.2-BBMP.'
The court said the mere pendency of the inquiry could not be a basis to withhold undisputed dues and directed the payments to be made along with interest calculated at 6 per cent per annum.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
36 minutes ago
- Time of India
Rural banks struggle to recover short-term crop loans as farmers wait for Mahayuti to fulfil waiver poll pledge
Kolhapur: Mahayuti's farm loan waiver promise before the assembly poll has hit rural banks hard, with farmers holding off on loan repayments in anticipation of debt waiver. As of May 31, a staggering 55.46% of short-term crop loan dues remained unpaid across Maharashtra's 31 DCC banks. In the 2024 kharif season, banks in Maharashtra disbursed Rs 40,628 crore in crop loans, primarily those short-term with an 11-month repayment tenure, benefiting 39 lakh farmers. However, preliminary figures accessed from individual District Central Cooperative (DCC) banks and the cooperation department ahead of the June 30 repayment deadline for short-term loans revealed a dismal recovery picture as of May 30, with no notable improvement. Satara DCC bank leads in loan recovery, yet faces a 2% drop in repayment of short-term crop loans, having disbursed Rs 1,800 crore in recoverable loans. Bank's CEO Rajendra Sarkale said, "Last year, around 98% of loans were repaid. By June 30 this year, we have recovered around 96%. The dues are mainly from the drought-prone areas like Man and Khatav tehsils." In March, deputy CM and finance minister Ajit Pawar had appealed to the farmers to repay crop loans highlighting the financial strain. Following this, the banks conducted meetings with primary agriculture societies, informing farmers that failing to repay loans by June 30 would result in losing interest subvention benefits, making their loans interest-free no longer, and instead charging 10.50% interest. Subsequent statements by CM Devendra Fadnavis and deputy CM Eknath Shinde, however, made the farmers to hold off on repayments. CM Fadnavis said, "We won't go back on any promise. Farm loan waiver implementation has rules and procedures. The decision will be made at the right time." Adopting the same stance, Shinde said, "We're committed to farm loan waiver, but need time to study it. We'll appoint a committee to examine the demand. " In the case of Kolhapur DCC bank, chairman Hasan Mushrif, who is also a state cabinet minister, said the bank was expecting the recovery of 97-98% of total Rs 2,587 crore recoverable loan. It, however, ended short of Rs 255 crore. "Loan-waiver rumour led farmers to withhold payments, limiting our recovery to 90%. Govt is seriously considering loan waiver, as announced by CM Fadnavis. However, we in the cooperative sector believe timely loan repayments should qualify farmers for waivers. We'll work towards this, as defaulting shouldn't be seen as the only way to benefit from waivers, which could harm banks and credit societies," Mushrif said. Sangli DCC saw a 5% drop in short-term crop loan recovery, with 75% of loans recovered till June 30, up from 68% at May-end. Due to a Rs 490-crore shortfall, bank's chairman Mansingrao Naik extended the repayment deadline to July 5. Farmers missing this deadline will receive a recovery notice under Section 101 of the Maharashtra Co-operative Societies Act, 1960. Nashik DCC bank disbursed Rs 411.30 crore in crop loans, of which Rs 207 crore is due. With an outstanding of 77% on short-term crop loans, Nashik DCC bank ranks among the top banks with poor recovery rate. "We have restructured the loans with lower interest rates to encourage the farmers to pay the dues. For instance, the dues of Rs 1 lakh will incur just 2% interest, and for Rs 1-5 lakh, it will incur just 5% interest," Nashik DCC bank administrator Santosh Bidwai said. Vijay Autade, a cooperative sector expert, said, "The poll promise made farmers hopeful. Besides, the farmers believe that if they pay the loans, they will not be eligible for a waiver. Govt brought a scheme to incentivise the farmers paying loans regularly. However, three years down the line, many farmers have not received the amount. The primary agriculture credit societies bear the brunt at the end, as they are left with less cash flow to disburse new loans. "
Economic Times
37 minutes ago
- Economic Times
Stock Radar: SBI stock breaks out from Symmetrical Triangle pattern; what should investors do with this Sensex stock?
State Bank of India (SBI), part of the PSU banking space, bounced back after testing 200-DMA earlier in June 2025 which helped the stock to break out from a Symmetrical Triangle pattern on the daily traders can look to buy the stock for a target of Rs 870-875 in the next 1-2 months, suggest PSU stock, which is also part of the BSE Sensex index, hit a high of Rs 898 on July 19, 2024, but failed to hold the momentum.
Time of India
an hour ago
- Time of India
Early investor Banga to sell 2% in Nykaa
Representative image MUMBAI: Indian entrepreneur and founder of Hong Kong-based The Caravel Group, Harindarpal Singh Banga, and his family are selling around a 2.1% stake in Nykaa worth about $140.3 million (Rs 1,200 crore) through a block deal on Thursday, the term sheet of the share sale showed. The Banga family was one of the early investors in the Falguni Nayar-led e-commerce firm and currently holds nearly a 5% stake in the firm. The Banga family will offload about 60 million shares at a 5.5% discount to Wednesday's closing price. Shares of Nykaa ended at Rs 212 apiece on the BSE on Wednesday, up 2.3%. "The Banga family invested in Nykaa when it was valued at about $25 million. Today, the company is valued at close to $7 billion. This is one of the top investor exits," said an industry source. In Aug 2024, Banga divested 1.4% stake in Nykaa, taking the transaction value to Rs 852 crore. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
