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PR cancelled locomotives purchase agreement, LHC told.

LAHORE -- Pakistan Railways Director Procurement Shahzad Alam on Thursday told the Lahore High Court that Railways had cancelled an agreement for purchase of 79 locomotives from a blacklisted company. The director appeared before Lahore High Court Chief Justice Umar Ata Bandial in connection with a petition challenging purchase of locomotives by Pakistan Railway from a blacklisted company. The petition was filed by petitioner-counsel Feroze Shah Gillani.

The director said the amount paid as down payment would be recovered.

However, the petitioner-counsel expressed apprehensions on recovery of down payment.

The court adjourning the matter till June 27 sought a report on progress made for recovery of down payment. The petitioner-counsel through his petition alleged that the Pakistan Railway had signed a deal to purchase locomotives from a blacklisted company which earlier supplied defective and sub-standard locomotives. He also submitted that the railway allegedly in violation of procurement regulatory authority directions had authorised Rs 15 million as down payment to the blacklisted company. The petitioner-counsel pleaded the court to issue directions to stop the purchase of locomotives and order fresh tender for the purpose.
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Publication:Balochistan Times (Baluchistan Province, Pakistan)
Date:May 24, 2013
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