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Deteriorating Smart City roads prompt withholding of ₹25 crore contractor bill

By Lokmat Times Desk | Updated: February 28, 2026 23:30 IST

Chhatrapati Sambhajinagar:Under the Smart City initiative, 106 roads in the city were concretised at a cost of ₹300 ...

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Chhatrapati Sambhajinagar:

Under the Smart City initiative, 106 roads in the city were concretised at a cost of ₹300 crore. However, in some areas, the road surfaces have deteriorated, with aggregates becoming exposed. A.G Construction Company had been instructed to repair the damaged sections, but the company reportedly ignored the directive. Consequently, a payment of ₹25 crore to the contractor has been withheld, sources said.

In the first phase, Smart City completed 22 roads, followed by 44 roads in the second phase, and 40 roads along with nine bridges in the third phase. Later, work on three bridges was excluded and was overseen by the Public Works Department (PWD). Although the contractor completed the roadwork, surface defects were observed in several sections.

To ensure quality, IIT Powai (Mumbai), was entrusted with inspecting the roads. The institute recommended replacing the damaged patches. Inspection revealed over 500 defective patches. Smart City CEO and Municipal Commissioner G Sreekanth instructed the contractor to carry out the repairs, but no work has yet begun. The exposed surfaces are causing significant difficulties for motorists.

Ten-year maintenance responsibility

The contractor is responsible for repairing any damage that occurs within ten years. To enforce this, ₹25 crore from the contractor’s bill has been withheld. So far, ₹230 crore has been paid to the contractor, while the remaining 10 per cent retention along with the ₹25 crore for unfilled patches has not been released.

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