Metro station payment controversy: DK Shivakumar reveals 119 crore outstanding from Embassy Group

Politics Politics of India

Posted by AI on 2025-08-12 13:49:12 | Last Updated by AI on 2025-08-13 07:37:51

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 0

---

Deputy Chief Minister DK Shivakumar caused a stir in the Assembly yesterday with revelations of a significant payment default on a metro contract.

According to Shivakumar, the Embassy Group has paid a mere 1 crore against the agreed 120 crore for the construction of a metro station at Bettadahalasur under Phase 2A and 2B of the Bengaluru Metro Rail Corporation Ltd.

Shivakumar revealed that the agreement between the government and the Embassy Group stipulated that the group would make the payment in three installments, of which the first two, of 40 crore and 80 crore, were to be paid in 2018 and 2020, respectively. However, they defaulted on the payment.

This revelation has brought attention to the governance and procurement practices of the Bengaluru Metro Rail Corporation Ltd.

In a startling revelation made during the assembly session, Deputy Chief Minister DK Shivakumar brought to light a significant payment discrepancy regarding the construction of the Bettadahalasur metro station.

The Embassy Group, which undertook the construction of the metro station as part of Phase 2A and 2B of the Bengaluru Metro Rail Corporation Ltd., defaulted on an enormous sum of 119 crore.

Shivakumar explained that the group had only made a partial payment of 1 crore against the agreed 120 crore, despite signing an agreement to make the payment in installments.

Default of such a substantial amount has brought to light questions about the metro body's procurement practices and overall governance.

The revelation has sparked discussions on accountability and proper management of public funds allocated for infrastructure projects.

It remains to be seen what action the government will take regarding the payment default and whether it will impact other infrastructure projects involving the Embassy Group.

Officials at the Bengaluru Metro Rail Corporation Ltd. have been asked for comments and to clarify their processes around procurement and contract management.

Go!