Gammon India Ltd calls conference to refute allegations made by sub contractors


Project coordinator of Gammon India LtdThe Gammon India Ltd. has denied every allegation made against it by M/s Indra construction and M/s Palzor construction. This is a follow-up move by the Indian company after the two sub-contracting companies allegations appeared in Kuensel, a local newspaper.

Project coordinator of the Gammon India Ltd. called the two companies’ allegations ‘completely baseless, extremely serious allegation and false’ in a press conference on Thursday that was specifically called to clarify the issues in media.

“Regarding this news, we completely deny all the allegations made upon us by the two sub contractors. On 8 August 2011 contractors had signed and accepted our terms and conditions along with the rates offered, and all their payments were made as per the terms and condition, on that time if they had problem they should have questioned us but after taking all the payments, now they are alleging that we are not paying them,” Project coordinator of Gammon India Ltd, Vicky Bansal said.

“It is extremely sad that both the sub-contractors M/s Indra construction and Palzor construction have tried to severely damage our company’s reputation by making completely false and baseless allegations against us in media, they are trying to blackmail us and extract money from us without having any basis of claim, alarmingly that too in the year 2013, where we have made the final payment to both the contractors almost an year ago, except for very minor amount towards unfinished minor works.”

He stressed that Gammon India Ltd Company believes in giving opportunity to new construction company. “Because if they do not give opportunity to them how the new contractors will come up, there will be no new company coming up then there will be only the old companies.”

He explained big companies will become bigger and smaller ones would remain small, therefore contractors will try their best with guidance of Gammon India Ltd engineers and technical people, now this contractor have learned from Gammon India Ltd and become experienced.

“Now what we feel is by helping the inexperienced people and giving jobs, we have come into problems, it is not matter of joke for us when somebody writes on media openly accusing of fraud and corruption. Today we have given employment to 2,000 people which include Bhutanese and Indian; about 75% of our contractors’ are Bhutanese. Out of which no other contractor have any problems,” he said.

According to Project Manager of Gammon India ltd, Mukti Nath Nepal they have all the documented evidence of final payment receipt and all the transaction had been made through bank, as of date there were unfurnished works like benching and hardly Nu 100, 000 is to be paid to these contractors. “Apart from that whatever they have claimed is totally against terms and conditions,” said Mukti Nath Nepal.

He said that we strictly follow the terms and conditions mutually agreed between our sub contractors and suppliers, but in case of special circumstances, we do not hesitate to help our construction.

As an example he cited an incident at tower location no.17B, where the head loading distance payable was for approx. 400 meters only, but was paid for 1 km and in another tower location no. 20, the head loading distance payable was for approx. 700 meters, but was paid for 2 km. distance.

He also clarified that the two sub contractors might have suffered some losses because some materials might have been delayed but it was never late for 3 months, (at the most it was a delay of 15 days), there are many works in tower foundation like building of retaining walls and protection wall, when materials were not on time, they have shifted labors to another works.

The project officials agreed some wrong materials were delivered which they have taken by head loading.

“We paid for that but these wrong materials were brought down by our own people. To compensate for the small delays, we have paid more for lesser length. For instance amount worthy of 2 km length was paid for 700 meter length. It is huge money and after the allegations we cannot help them,”

Further the Project coordinator of Gammon India Ltd, Vicky Bansal said “If we don’t receive any communication from court, we will file separate case against both the contractors, if required we will file case both in Bhutan and India, if the law permits, because we have to do according the law of Royal Government of Bhutan (RGoB) as we are working here.”

The Project officials said now they are afraid even to give works to other contractors, as they might face similar problems.

“We are hurt because of allegations like ‘fraud and corruption.’ Our reputation is priceless but we will not keep quiet, we will take it to highest level possible in Bhutan and India and forward matter to Construction Development Board (CDB),” said Vicky Bansal.


Tshering Dorji 


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  1. So whats the allegation from the other parties and view after press conference. Is it is for next issue….seems this paper is for selling news.

  2. I guess it is one sided issues. How about publishing story from the both parties.

  3. I find the comments of Gammon India Ltd Vicky Bansal rather offensive. His comments “ we will file case both in Bhutan and India” and “we will take it to highest level in Bhutan and India”. Gammon is doing business in Bhutan and his company is subject to Bhutanese law. Why he has to refer it to Indian court and Indian authority. A year ago some Indian businessmen were convicted in China and they are in jail in China. The Chinese said when they do business in China, they have to follow Chinese law.
    I am alarmed when I read Kuensel last week that according to Dasho Chhewang Rinzin Bhutan holds 50 percent in the joint ventures in hydro projects. The projects are in our soil and we should have 51% share in the joint ventures. It seems that the government has compromised the sovereignty of our country. We will not forgive anyone that compromises the sovereignty of Bhutan. Once these projects are commissioned Bhutan will be selling power to India at extremely cheap rate compared to power cost in other parts of the world. For the relationship to sustain, all agreements should be just and fair.

  4. Government have no options. Because there is only onw buyer. Thats why opening trade with china can be alternatives so that at least we have two buyers competing…

  5. bangaladesh is ready to buy power from Bhutan…so i don’t think India is the only buyer.

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