The Municipal Corporation has terminated the extension given to M/s Lion Services Ltd, which has been providing sanitation services in Southern sectors — from 31 to 50, 61 and 63 — for many years.
Besides terminating the extension, Amit Kumar Commissioner Municipal Corporation has written a dissent note with respect to the agenda passed by the MC general house for giving a contract to the company, which quoted the lowest rates in response to the tender floated a few months ago.
The MC had been granting extension to the company on a regular basis for many months due to the non-finalisation of a fresh tender, after its contract expired last year.
The contract was extended initially in September 2025 for three months. After that, the company was granted extension on a regular basis on the plea that sanitation in the southern sectors shouldn’t be hit and process to float a fresh tender and allot work to a successful bidder would require due time.
The company has been providing its services in southern sectors since it was awarded the contract in 2017. The corporation pays the company approximately Rs 50 crore annually.
When the agenda about giving information regarding the status of the tender process was placed before the MC House, many councillors favoured giving the contract to the same company, overruling the objections raised by the MC officers. The company had quoted the lowest rates in its response to the tender. The MC officers were not in favour of allotting a fresh contract to the company as it had failed to give a satisfactory reply to a questionnaire sent to it. The officers claimed that the bid quoted by the company was still on the higher side (lowest price is more than 35.01% of the estimated rate), and hence, it is recommended that the tender should not be considered.
Sources said the Municipal Commissioner has sent his dissent note to the Secretary, Local Government, on the agenda passed by the general house for giving the contract to the company
