Ahmedabad: The city civic body has decided to eliminate the arbitration clause from its future tenders. This decision comes after the Ahmedabad Municipal Corporation (AMC) incurred significant financial losses of Rs 104 crore over the past five years in arbitration cases.

AMC’s legal committee chairman, Prakash Gurjar, stated that a review of arbitration cases from the past five years revealed that the corporation lost Rs 104 crore in 60 cases and paid Rs 4 crore in fees. “The BPMC Act does not include an arbitration clause, so we chose to remove it from all tenders,” he explained.

Meanwhile, to address suspected irregularities and misconduct linked to these cases, AMC has launched a vigilance investigation into all 60 cases. Additionally, show-cause notices may be issued to officers involved in cases with alleged fraudulent arbitrators. DeshGujarat

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