Govt slaps Pappu Construction cash fine of Rs 2 billion over delayed construction

Summary

The government has ordered Pappu/Mahadev JV to deposit nearly Rs 2 billion for failing to complete the Kankai River bridge in Jhapa for 14 years. The Postal Highway Directorate says the contractor may face recovery from its assets if the dues are not paid within 35 days.

Key Points
  • The Postal Highway Directorate's Project Office in Itahari has issued a public notice asking Pappu/Mahadev JV to pay Rs 1.991 billion in outstanding dues within 35 days.
  • The contractor is accused of failing to execute the Kankai River bridge project, causing prolonged delays and breaching contract clauses.
  • The Kankai bridge in Jhapa, estimated at Rs 340 million, has remained incomplete for 14 years after the contract was signed.
  • The government has also directed other contractors, including Gauri Parbati/Dev and Sayar/Bhumi JV and Shrestha Construction Company, to deposit fines in the state treasury.