Pune Police Register Case Against Contractor for Non-Payment of Rs 86 Lakh
The Sangvi police in Pune have registered a case against a contractor for allegedly cheating an electrical subcontractor of Rs 86 lakh by not paying for completed work, despite receiving the funds from the PCMC.
CheatingContractorNonpaymentConstructionPcmcReal Estate PuneOct 15, 2025
Inspector Amol Nandekar of the Sangvi police said, "The complainant, an electrical contractor, approached us after pursuing his money for over two years without success. He claimed that the contractor did not pay the dues despite receiving the funds from the PCMC."
According to the complainant, the accused contractor secured the contract for the construction of a road in the Bhosari area from the PCMC in November 2021. The contractor then subcontracted the electrical work to the complainant. "The complainant completed the work within the stipulated time and submitted the bills to the PCMC. The PCMC, in turn, transferred Rs 1.99 crore to the contractor's bank account, clearing the bills," Nandekar explained.
However, the complainant alleged that the contractor only paid Rs 66.12 lakh and refused to pay the remaining Rs 86 lakh. The contractor claimed that the complainant had not paid the GST on time, which led to the non-payment of the balance amount. "When the complainant started pressing the contractor for the payment of the balance, the contractor began issuing threats," Nandekar added.
The police have registered a case against the contractor under sections of cheating and criminal breach of trust. "Our investigations are ongoing, and we are gathering more evidence to support the complainant's claims," Nandekar stated.
This case highlights the challenges faced by subcontractors in the construction industry, where timely payment and adherence to agreements are crucial. The legal action taken by the Sangvi police is expected to set a precedent and deter similar incidents in the future. Subcontractors often rely on timely payments to manage their operations and financial stability, and such cases can have severe repercussions on their businesses.
The Pimpri Chinchwad Municipal Corporation (PCMC) is a local governing body responsible for the administration and development of the Pimpri-Chinchwad area in Pune district. PCMC plays a significant role in urban planning, infrastructure development, and providing essential services to the residents. The corporation's involvement in this case underscores the need for transparency and accountability in public contracts.
For the complainant, the next steps involve cooperating with the police and providing all necessary documentation to support the case. Legal experts advise that subcontractors should ensure they have robust contracts and clear terms of payment to protect themselves from such situations. The legal process can be lengthy, but it is essential for securing justice and maintaining the integrity of the construction industry.
Frequently Asked Questions
What is the total amount the contractor received from the PCMC?
The contractor received Rs 1.99 crore from the Pimpri Chinchwad Municipal Corporation (PCMC) for the completed work.
How much of the total amount did the contractor pay to the subcontractor?
The contractor paid Rs 66.12 lakh to the subcontractor out of the total Rs 1.99 crore received from the PCMC.
What is the reason given by the contractor for not paying the remaining amount?
The contractor claimed that the subcontractor did not pay the GST on time, which led to the non-payment of the remaining Rs 86 lakh.
What legal action has been taken by the police?
The Sangvi police have registered a case against the contractor under sections of cheating and criminal breach of trust.
What is the role of the Pimpri Chinchwad Municipal Corporation (PCMC) in this case?
The PCMC is the local governing body that awarded the contract for the road construction and transferred the funds to the contractor's bank account.
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