The massive building of the Telugu Desam Party head office at Atmakuru of Mangalagiri mandal in Guntur district has now been caught in a controversy between the original builder contractor and material supplier for the building over payment of dues to the latter.
The contractor – SRR Projects Pvt Limited of Visakhapatnam has made it clear to Hyderabad-based Preca Solutions Private Limited which has supplied material for the construction of the building, that it should claim the payment of Rs 8.21 crore from the TDP.
The issue has gone to the Telangana high court, which appointed an arbitrator to resolve the issue of payment of bills between the contractor and the material supplier. Retired high court judge justice P Swaroop Reddy would be the arbitrator to resolve the issue.
According to the petition in the high court, the TDP entered into an agreement with Visakhapatnam-based SRR Projects Pvt Limited for construction of its office at a cost of Rs 21.01 crore at Mangalagiri mandal.
The company had entered into an agreement with Hyderabad-based Preca Solutions Private Limited for supply of material for the construction of the building. After the work is completed, the construction company is not paying it Rs 8.21 crore due for the work.
The company also said the construction company was saying that it would pay the bills only if the TDP authorises the same. Preca Solutions Private Limited further said the construction company had refused to pay the bills and claimed that the TDP would pay the amount.
The firm, in its petition, further said the TDP had also agreed to pay the amount. As the amount was not paid, the Preca Solutions Private Limited served a notice to the construction company for which the latter had asked the petitioner to resolve the matter with the TDP.
The SRR company, during the hearing last month, said it would consult the TDP, but did not respond to the court’s order. Considering the plea of the petitioner, the High Court issued orders appointing retired High Court judge Justice Swaroop Reddy as the arbitrator.
