Swiss firm sends notice to M’htra Govt over unpaid Rs 1.58cr for Shinde’s Davos trip

The Maharashtra government has come under scrutiny after it received a legal notice for allegedly failing to pay Rs 1.58 crore to a Switzerland-based company, SKAAH GmbH, for hospitality services provided during Chief Minister Eknath Shinde’s visit to the World Economic Forum in Davos earlier this year.

The Indian Express reported that the notice, dated August 28, was sent to the Maharashtra Industrial Development Corporation (MIDC), which had contracted the services on behalf of the state delegation. The notice also involved the Chief Minister’s office, External Affairs Minister S Jaishankar, and the World Economic Forum.

SKAAH GmbH claims the state-run MIDC paid Rs 3.75 crore of the total bill, but the remaining Rs 1.58 crore remains outstanding. The Swiss company highlighted that all payments were initially kept pending on the trust that MIDC, being a government organisation, would eventually settle the amount. The delay in payment has reportedly caused significant financial damage to the company’s credit and overall financial standing.

The notice warns of legal action if the dues are not cleared and seeks interest at 18% per annum on the pending amount. Moreover, the matter is described as one that could potentially impact international relations between India and Switzerland if not resolved swiftly.

The issue, which arose from the services rendered during the January 2024 World Economic Forum, involves expenses incurred for the hospitality of Shinde, several ministers, and state government officials who attended the global economic event. The notice indicates that the delegation exceeded the designated number of visitors for whom services were originally arranged, but SKAAH GmbH accommodated the additional demands.

P Velrasu, the head of the MIDC, stated that while he was unaware of the specific legal notice, the organisation would review the documentation and take necessary actions based on the situation. As the situation unfolds, questions are being raised about the management of the expenses for such high-profile government delegations abroad and whether there were oversights in the payment procedures.

The political implications of the controversy are notable, especially with the Assembly elections in Maharashtra approaching. Opposition parties, particularly the Maha Vikas Aghadi (MVA), have been critical of the government’s handling of the issue.

The MVA alliance, which includes the Uddhav Thackeray faction of the Shiv Sena, the Nationalist Congress Party (NCP) under Sharad Pawar, and the Congress, has seized on the issue as evidence of mismanagement by the current government, which they argue has caused embarrassment to the state.

Rohit Pawar, a leader within the Sharad Pawar faction of the NCP, voiced concerns that the unpaid dues could tarnish Maharashtra’s reputation and send a negative message to potential investors. This criticism is being levied at a crucial time when Maharashtra seeks to maintain its position as a favourable destination for business and investment.

In response to the allegations, Uday Samant, Maharashtra’s Industries Minister, denied that the delegation overspent during its trip to Davos. He instead pointed to political motivations behind the allegations, attributing them to the MVA members. Samant assured that the state’s legal team would address the notice appropriately.