Following a petition filed by residents, the Bombay High Court had recently ordered MHADA to complete repair works and provide facilities like roads and drains at the low- and middle-income group housing colony at Chandivli.

The contract for nearly 4,500 houses, which was given to Abode Constructions, was executed in a very slip-shod manner, MHADA officials admitted. At its executive body meeting on Thursday, MHADA turned down a proposal mooted by vice-president Gorakh Megh to waive a fine of Rs 54 lakh imposed on Abode Constructions.

Some members proposed to recover Rs 76 lakh from the company, which they said was given during another contract in 1991. It was also decided to initiate an enquiry against theemployee who had failed to recover the Rs 54 lakh fine from Abode Constructions.

Immediately after Megh's proposal was tabled today, MHADA president Vilas Avachat raised objections and urged stern action against Abode for its failure to complete the contract. Earlier, Mumbai Repair and Reconstruction Board chairman Madhu Chavan had said the company had failed to renew its bank gaurantee and had thus cheated MHADA. He demanded a criminal complaint be filed against the firm, and was supported by Avachat.