Apart from the 5 per cent of the over Rs 20 crore paid as ernest money deposit by each contractor to the MSRDC, at the Mumund naka at LBS Marg, the Mulund naka on the Eastern Express Highway and the Dahisar naka, they had also deposited Rs 50 lakh with the corporation every Monday since the last three weeks as per projections.

The contractors point out that with the actual toll collections since the notification took effect on July 12, being far less than anticipated, vast sums of their money are now tied up with the MSRDC.

Moreover, they say, since their contracts have been awarded for a year only, profit margins will shrink, thanks to the stay on toll collection onAugust 7.

Contractors for the Dahisar naka, Prakash Constructions, told Express Newsline that they will continue to incur daily losses amounting to thousands of rupees on overheads, infrastructure and staff salaries, which cannot be recovered from the MSRDC.

Says Shadilal Chopra, owner of Prakash Constructions: ``We had faced resistance from motorists from the very first day the toll was introduced, from taxi unions, school buses, water tankers, construction trucks and milk vans. Eventually, on July 30, we were abruptly told to freeze collection through a fax order.''

Moreover, he points out, the actual amount recovered has been far less than anticipated though the money already deposited with the MSRDC was based on calculations including various types of vehicles. With successive exemptions on vehicles like tankers and school buses, collection has sufferred considerably, he explains.

Yeturi Constructions, appointed at the Mulund naka on the Eastern Express Highway, says more than 600 vehiclesbelonging to various state government departments pass through the check point every day but most of them avoided paying the toll saying they were government employees. Office-bearers of Yeturi Constructions say, ``We did complain to the MSRDC about this violation but by the time the government issues a notice to each of its departments instructing them to pay the toll, we would have already suffered huge losses.''

MSRDC Executive Director, Ramakant Jha, explains: ``Due to unforeseen circumstances, we have breached our contracts with the toll-collectors. We understand that it would not only mean a loss of toll revenue for the period during which the toll will not be collected, but also claims by the contractors for expenses on overheads and infrastructure.''

However, the contractors reason that though the MSRDC might settle the fixed costs incurred by them, the interest lost on the over Rs 1 crore deposited by each of them as earnest money will be substantial.

For instance, Prakash Constrcutions employsabout 132 staff round-the-clock while Yeturi Constructions spends Rs 3 lakh per month on salaries alone. This, in addition to the approximately Rs 50 lakh spent by each contractor to set up the toll plazas themselves.

Contractors are therefore anxiously awaitng the recommendations of the special committee chaired by Transport Commissioner V M Lal, who will submit their suggestions to the Bombay High Court by the weekend.