As liability mounts, restoration of Estates property suffers

Excelsior Correspondent
Srinagar, June 12: The restoration work of Estates properties in Srinagar has come to standstill due to strike called by the United National Contractors Association Estates Division Srinagar after Government failed to clear the liabilities of over Rs 35 crore.
A senior Government official said that Estates properties in Srinagar faced Rs 70 crore damages in last year’s floods. Majority of the properties including Government Quarters, Bungalow and flats remained water logged for around one month in September last year causing severe damages.
The Department had submitted a proposal of Rs 60 crore for the flood restoration works of the Estates properties and so far the Government has paid only Rs 20 Crore to the contractors for flood restoration works. However, rest of the Rs 40 crores of the contractors is still pending with the Government.
The officials said that there is a liability of Rs 35 Crore for the year 2013-2014 and 2014-2015 and despite assurances by the Government, the contractors were not paid even a penny.
The officials said that the department has managed to complete 90 percent flood restoration work in Srinagar but the contractor’s strike has affected the renovations and rest of the flood restoration.
President of the United National Contractors Association Estates Division Srinagar, A K Bazaz, told Excelsior that they will not resume restoration work of the Estates properties till the liability is cleared. He said that there is around Rs 40 crore liability for the financial year 2013-1014 and 2014-2015.
Bazaz said that the contractors didn’t want to create any problem for the new Government in March this year and continued the restoration works for the financial year 2015-2016 despite huge liabilities.
“We were assured by the Commissioner, BB Vyas and Director Estates, G N Itoo, that the liabilities will be cleared. The delaying tactics forced us to go for strike and we have suspended our work”, said Bazaz.
The Contractors Association President said that contractors have huge bank loans and owe money to shopkeepers and workers. “We are unable to pay them and on the other hand liabilities are mounting and under such circumstances it is not possible for us to continue to carry on works”, he added.
Bazaz said that Finance Minister, Haseeb Drabu, also assured the contractors that liabilities will be cleared but so for nothing was done.
However, a senior Government official said that government is releasing the money to clear the liabilities.