Maharashtra Government Faces Legal Challenge Over Unpaid WEF Dues from Swiss Firm
Mumbai, 5th October 2024: In a major setback for the Maharashtra government led by Eknath Shinde, a Switzerland-based company has issued a legal notice over unpaid dues related to hospitality services provided during the World Economic Forum (WEF) held in Davos earlier this year. This controversy has triggered a political uproar, with opposition leaders accusing the government of financial mismanagement and excessive spending.
The firm, SKAAH GmbH, claims that the Maharashtra Industrial Development Corporation (MIDC) has not cleared a pending amount of Rs 1.58 crore for services extended to Chief Minister Eknath Shinde, ministers, and officials during their visit to the WEF in January. While the MIDC has reportedly paid Rs 3.75 crore, the remaining balance is still unpaid, according to the company.
As reported by The Indian Express, the notice, dated August 28, was sent to several prominent entities, including the MIDC, the Chief Minister’s Office, External Affairs Minister S. Jaishankar, and the WEF. It warns of potential legal action if the outstanding dues are not resolved, citing substantial financial losses incurred by SKAAH GmbH due to the delay. The notice expresses the company’s trust in the MIDC as a government organization and regrets the damage caused by the outstanding payments.
MIDC CEO P. Velrasu stated that he was unaware of the notice, adding, “I am not aware of any such notice. However, MIDC will review the documents and take necessary action.” Despite this, the matter has already sparked criticism from the opposition.
Leaders from the Maha Vikas Aghadi (MVA), particularly Aaditya Thackeray from the Shiv Sena (UBT) and Rohit Pawar from the NCP, have seized the opportunity to criticize the Shinde administration. Thackeray accused the government of excessive spending on the Davos trip and called for accountability and transparency in the state’s financial practices. Pawar warned that such mismanagement could damage Maharashtra’s reputation as an attractive destination for international investment, stating, “Such insolence by the Maharashtra government could have repercussions at a forum like Davos.”
Acknowledging the receipt of the legal notice, state industries minister Uday Samant defended the government’s position, asserting, “We have not overspent. These allegations are being made by MVA MLAs. Our legal team will respond to this notice and investigate the matter.” However, opposition leaders remain steadfast, with Pawar indicating that the fallout from this incident could harm Maharashtra’s standing among foreign investors.
The Swiss firm’s notice highlights the broader implications, claiming that the issue is damaging diplomatic relations between India and Switzerland. It also pointed out that the services rendered exceeded the original agreement due to additional visitors attending the WEF convention. Despite accommodating these extra requests, the company asserts that its repeated demands for payment were met with excuses and delays from the MIDC.
The legal notice further alleges that the MIDC’s failure to settle the payment has caused intentional harm, not only to the Swiss company but also to its employees, resulting in significant economic losses.
