KOCHI: The Roads and Bridges Development Corporation of Kerala (RBDCK) Ltd has decided to initiate legal action to recover the Rs 4.72 crore furnished as bank guarantee by RDS Project Ltd, the contractor of Palarivattom flyover, for the construction of RBDCK office-cum-commercial complex at Kakkanad here.
The move follows the Kerala High Court directive asking RBDCK to maintain status quo with respect to encashing the bank guarantee.
“We will try to get the stay vacated to seize the bank guarantee deposited for the office-cum-commercial complex project. Since the matter is sub-judice in the High Court, we are taking legal opinion for approaching the court,” said an RBDCK official.
The bank guarantee is used to charge the contractor for the lapses and contractual violations during the period of agreement. The official said work on the project, which started in 2014, was stalled in recent months due to public protests.
“The RDS Project’s contract will soon get cancelled for the inordinate delay in constructing the office-cum-complex,” said the official.
On October 29, Roads and Bridges Development Corporation of Kerala had seized Rs 4.5 crore from RDS Project in the wake of the Palarivattom flyover issue. At present, RDS is not managing any RBDCK project in the state.