Va Tech Wabag files petition in Delhi HC against DJBs debarment letter; stock ends lower

In response to the said letter, the Company has filed a writ petition before the High Court of Delhi, and High Court of Delhi has given two weeks to DJB to file their response, the company added.

Oct 29, 2020 04:10 IST India Infoline News Service

Wabag
Va Tech Wabag announced that in connection with the Company's contract for operation and maintenance with Delhi Jal Board for 45 MLD Sewage Treatment Plant at Kondli, Delhi, certain disputes have been taken up by the Company with the client, including non-payment of dues (approx..Rs13cr) for more than 5 years, amongst other issues.

To our surprise, instead of accepting the dispute, DJB has unilaterally and arbitrarily issued a Debarment letter to the Company stating that the Company is debarred for the period of 3 years from participating in Delhi Jal Board tenders, which has been disputed by the Company, WABAG said in the filing.

In response to the said letter, the Company has filed a writ petition before the High Court of Delhi, and High Court of Delhi has given two weeks to DJB to file their response, the company added.

Va Tech Wabag Ltd ended at Rs183.95, down by Rs4.3 or 2.28% from its previous closing of Rs188.25 on the BSE.

The scrip opened at Rs187 and has touched a high and low of Rs187.50 and Rs182.70 respectively.

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