Status quo over NCC’s AP Bhavan project

By S A Ishaqui
Hyderabad,Feb. 24: The AP High Court on Tuesday granted status quo on the bank guarantee furnished by Nagarjuna Construction Company Limited for developing the AP International Centre near AP Bhavan in New Delhi.
The NCC consortium had bagged the contract in competitive bidding and entered into an agreement with the infrastructure corporation of the state to build the multi-utility complex in 19 acres adjacent to the AP Bhavan in Delhi. It furnished a Rs 5 crore bank guarantee to complete the agreement and execute the project.

The government issued an order on February 20 to cancel the agreement as the company failed to comply with the terms and conditions of the contract.
The NCC approached the High Court challenging the order. Mr K.B. Sastry, authorised signatory of the company, contended that the grounds referred to by the government were untenable.
He said the company never failed to comply with the conditions and terms of the contract and it was ready to execute the project.
Dealing with the petition Justice Ramana granted interim prayer soughtby the petitioner with regard to the bank guarantee.