Kozhikode: Kannur Mayor TO Mohanan said that controversial company Zonta Infratech owes Rs 68,60,000 as part of a contract signed for waste treatment at Kannur Corporation.
Zonta Infratech, a contract company at the Brahmapuram plant, has come under the lens of authorities in recent weeks after a series of allegations were raised against it.
"Kannur Corporation financed Rs 35 lakh for the project and an additional sum to pay employee salaries and cover fuel costs. The company informed us that they had already spent Rs 59 lakh when we asked them to return the amount. The company also failed to explain what happened to the remaining sum," Mayor TO Mohanan said.
He said that the Corporation would take legal action to recover Rs 10 lakh allocated to cover fuel expenses. He claimed that company representatives only visited the project area once or twice.
"Despite placing a higher quotation, a government official pushed to include Zonta Infratech in the waste treatment project. When we sought the government's help to remove Zonta Infratech, the government official issued a letter directing the Corporation to issue a contract to the company," the Mayor said. Zonta was finally relieved of the project after a meeting supervised by the chief minister addressed the issue. Later, a Pune-based company took over the project.
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