Angry Bucon Engineers tells GAIL Gas to pay up

Vol 18, PW 10 (15 Jan 15) People & Policy

Bucon Engineers, a Mumbai-based pipeline contractor, is challenging GAIL Gas in court for non-payment of bills running to Rs4cr ($650,000).

On December 24, 2014 Bucon filed a petition in the Delhi High Court seeking the appointment of an arbitrator to get its money from GAIL Gas. “We were forced to approach the courts,” Bucon tells us.

“GAIL Gas is not responding to our emails, couriers or letters sent by registered post. Till date we have not received any reply.

Even our bank guarantee has not been returned.” Bucon adds this petition relates solely to unpaid work carried out at Meerut, but that separate legal petitions are planned for Kota and Firozabad, where it has also not been paid for work carried out.

GAIL Gas issued Bucon a LoI on June 28, 2010, with a mandate to lay pipelines within 16 months. Bucon raised its final bill on June 24, 2013.

“As contractors we fulfilled our commitment to lay and commission different pipeline stretches in stages,” adds Bucon. “But once we completed the job GAIL Gas refused to pay our money.

” So desperate is Bucon that it is now trying to meet GAIL chief BC Tripathi and director projects Ashutosh Karnatak. Bucon says it needs the money from GAIL Gas to fund its expansion plans after bidding for the union territory of Daman in the fourth retail gas round.