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BMC Faces ₹65.31-Crore Liability After Supreme Court Sewage Dispute
The BMC hired consultants in 1995 to improve sewage services in Mumbai.
The work was completed in 2001, but the consultants said they were still owed money and interest.
An arbitrator agreed with the consultants in 2010.
The BMC challenged that decision in court for many years.
On August 24, 2026, the Supreme Court rejected the BMC’s review petition.
The BMC must pay about ₹65.31 crore by September 24.
City representatives criticized the handling of the case.
The Standing Committee ordered an inquiry to find out whether officials should be held responsible.
The Brihanmumbai Municipal Corporation faces a ₹65.31-crore liability after losing a prolonged sewage consultancy contract dispute.
The Supreme Court dismissed the BMC’s review petition and upheld an arbitration award ordering payment to the consultants.
The dispute began after a 1995 contract to upgrade sewage operations and maintenance services was completed in 2001.
An arbitrator ruled in the consultants’ favour in 2010, awarding payment with 14% interest.
The Standing Committee ordered a 15-day inquiry into officials allegedly responsible for the prolonged litigation and financial burden.
- Who
- The Brihanmumbai Municipal Corporation, Canada-based R.V. Anderson Associates, its local partner PHE Consultants, and BMC officials are involved.
- What
- The Supreme Court upheld an arbitration award requiring the BMC to pay a ₹65.31-crore liability linked to a sewage consultancy contract.
- Where
- The dispute concerns the Brihanmumbai Municipal Corporation in Mumbai, Maharashtra.
- When
- The contract was awarded in 1995, the work was completed in 2001, arbitration was decided in 2010, and the Supreme Court ruling was dated August 24, 2026.
- Why
- The dispute arose over unpaid consultancy fees and interest after the sewage operations and maintenance project was completed.
Key facts
- Financial liability
- ₹65.31 crore
- Original contract
- Awarded in 1995 for sewage operations and maintenance consultancy
- Project completion
- 2001
- Arbitration award
- Issued in 2010 in favour of the consultants, with 14% interest
- Supreme Court order
- The BMC’s review petition was dismissed on August 24, 2026
- Payment deadline
- September 24, 2026
- Inquiry deadline
- The Standing Committee ordered a report within 15 days
Sources
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