Gammon India to be issued show cause notice for Delhi metro mishap

New Delhi, July 28 (ANI): Union Urban Development Minister S Jaipal Reddy on Tuesday said that the contractor of the Delhi Metro, Gammon India, would be served with a show cause notice on why it should be blacklisted for two years for contributing to this month's mishap on the network in Delhi.

The decision was taken following an Action Taken Report submitted by the Delhi Metro Rail Corporation (DMRC) probe committee to the Urban Development Minister.

"The contractors M/S Gammon India to be issued a show cause notice for blacklisting for two years," Reddy told the Lok Sabha.

Shares of the over-86 year-old company, whose business spans transportation, engineering, hydropower and irrigation, fell as much as 17.5 per cent after the accident.

It later recovered to close 2.7 percent up at 165.60 rupees. The broader market was down 0.77 percent.

Six persons, including an engineer, were killed and over a dozen others injured when an under-construction over-bridge of the Delhi Metro collapsed on July 12 near Nehru Place in south Delhi.

An under-construction flyover by Gammon India partially collapsed in Hyderabad in September 2007.

The DMRC has enjoyed strong government support so far and is not shackled by the delays, cost overruns and red tape that have plagued big projects in India for decades. (ANI)