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The Maharashtra government has received a legal notice from a Switzerland-based services company for alleged non-payment of bills totaling Rs 1.58 crore, which the company submitted for hospitality services provided to Chief Minister Eknath Shinde and several ministers and officials during their visit to the World Economic Forum (WEF) in Davos, Switzerland, in January.
In the notice dated August 28, addressed to the Maharashtra Industrial Development Corporation (MIDC), the chief minister’s office, External Affairs Minister S. Jaishankar, and the WEF, among others, the contractor SKAAH GmbH has claimed that the state-run MIDC has not settled Rs 1.58 crore. This is despite the Swiss firm submitting invoices for the services rendered to MIDC during the WEF convention, held from January 15-19.
According to the notice, MIDC has paid over Rs 3.75 crore of the total bill, leaving this as the outstanding amount. When contacted, MIDC CEO P. Velrasu stated, “I am not aware of any such notice. However, MIDC will verify the vouchers and take appropriate action. The matter will be resolved based on merits at the earliest.” The opposition Maha Vikas Aghadi MLAs, including Sena UBT’s Aaditya Thackeray and NCP(SP) MLA Rohit Pawar, have also alleged that the government overspent on the Davos trip.
Criticizing the government, NCP MLA Rohit Pawar remarked, “Such negligence by the Maharashtra government could damage Maharashtra’s reputation at a forum like Davos, which is crucial for international investment and sends a negative message to investors.”
The notice, which warns of potential legal action, states, “All payments were kept outstanding and pending based on the trust in the MIDC as a government organization and in good faith, with the expectation of payment in due time and as agreed between the parties.
However, MIDC has failed to make the payment for the outstanding sum, causing substantial financial damage and harm to our client’s credit and financial situation. Therefore, MIDC is liable to pay the total outstanding amount of Rs 1,58,64,625.90 along with interest at 18% per annum…”
“This issue is affecting international relations between India and Switzerland, and a prompt resolution is necessary to prevent further disputes or conflicts that could arise from the unresolved payment,” the notice states.
It also emphasized that while services were meant for a designated number of individuals, the visitors at the WEF convention exceeded that number, yet the company fulfilled the services and accommodated all necessary requests.
“Despite our client’s repeated requests for payment, made through calls and emails to MIDC representatives, the payments have been persistently delayed. MIDC and its representatives consistently provided excuses for these delays… MIDC and its representatives have deliberately neglected their duties, responsibilities, and accountability towards our client,” it states.
The notice also asserts that MIDC and its representatives caused significant financial and economic loss to the Swiss firm, as well as harm to its employees. “These consequences appear to be deliberate and intentional,” it concludes.