PALAKKAD: The work continued and was finally terminated by the then LDF Government on December 6, 2006. A total of five bills were submitted for `10.5 crore and the total outstanding dues have now amounted to `45-`50 crore. The RBM subsequently approached the Arbitration Tribunal first and later the Thiruvananthapuram District Court, both of which ruled in its favour. The government filed an appeal at the Kerala High Court and the case is pending there.
The company still maintains an office in Palakkad with skeleton staff to fight its cases. It has pulled out of Kerala even though it still bids for projects in other states. The State Government cites non-completion of work as per schedule as the reason for the contract termination. It also stated the costs at which the work was tendered was on the higher side. At the time of termination, RBM had completed 80 per cent of the Palakkad-Kulappully road and 20 per cent of the Kuttipuram-Choondal road.
It was around the same time, in November 2006, that another Malaysian company Pati Bel had bid for a project connecting Muvattupuzha, Kollam and Thiruvananthapuram. Its contract was also terminated after 60 per cent of the work on the 128-km stretch was done. The total project cost was `216 crore. The suicide of Pati Bel’s Malaysian chief project manager Lee See Ben had hit headlines back then, with the non-payment of dues amounting to `13 crore by the State Government pointed out as the reason.