Contractors cannot undertake shoddy construction using public money: HC
The Karnataka High Court has rejected the petition by a construction company seeking the return of the bank guarantee which was encashed by the Karnataka State Police Housing and Infrastructure Development Corporation (KSPHIDC) for alleged shoddy construction of police quarters by the firm.
The High Court also directed that engineers involved in shoddy constructions using public money be brought to book.
Citing earlier Supreme Court judgements, the High Court said that bank guarantees were not for show and the corporation had done the right thing. "What would unmistakably emerge is that the Bank Guarantee is not furnished for it to be photo-framed and hung on the wall, it has a purpose. The purpose is redeemed by the Corporation and cannot be found fault with."
PG Setty Construction Technology Pvt Ltd had approached the High Court after KSPHIDC encashed the bank guarantee of Rs 1,15,13,500 for allegedly shoddy construction of 144 police quarters in Mandya and Chamarajanagar district