More sub-contractors who have supplied construction material for Chennai Metro Rail project are planning to seek legal remedy to recover their dues from Mosmetrostroy, a Russian company which handles the tunnelling contract for the project.

Mosmetrostroy, in partnership with an Indian company, Gammon, was awarded two contracts totalling ₹1,947 crore for building 19 underground stations and 18 km of associated tunnels for Chennai Metro.

100 vendors left in lurch

However, Mosmetrostroy stopped work last month after Chennai Metro Rail declined to accept its demand for cost escalation.

Gammon handles the construction of underground stations that’s going on.

R Madhiazhagan, Vice-President, Chennai Vendor Association, who represents the sub-contractors, said over a 100 sub-contractors who supplied sand, cement and brick, bolts and steel bars have been left in the lurch with payment dues of over ₹30 crore.

Sources said five vendors have filed petitions on Monday seeking a direction from the Court to help them recover the dues, and the rest will approach the court in a day or two.

Bank guarantee

Chennai Metro can invoke bank guarantee to the tune of ₹77 crore given by Mosmetrostroyto settle the dues of sub-contractors of the Russian company. However, for this, an order from the Madras High Court is necessary.

Madhiazhagan, who is among five petitioners said when the matter came up for hearing on Monday, the Court wanted to know whether Gammon and CMRL had any objection to the invoices raised. They did not have any objection, and have, in fact, endorsed the invoices, he said. The sub-contractors first approached the Commissioner of Police and then CMRL to recover their dues. They also approached the Russian Consulate to bring back the officials to start the project, but in vain, he said.

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