LEVY OF PENALTIES. 16.5.1 Penalty on account of Non-Performance
a. The Operator shall be liable to pay Penalty every month during the Operation Period to the Authority in respect of the infractions provided in Schedule X of this Contract or elsewhere in this Contract (the “Penalty”);
b. Infractions have been segregated in 3 (three) main categories, with 2 (two) sub-categories under each, for application of Penalties for different infractions as detailed in Schedule X. Amount of Penalties recoverable for various categories of infractions is given as multiples of rate (X) .i.e. PKOMF payable to the Operator. Time for resolution of each infraction is 1 (one) day with an extreme limit of 3 (three) days;
c. Operator shall be required to rectify infractions noted/ intimated by the Authority through a written notice, within the time period, as indicated in Schedule X or within the number of days indicated by the Authority for any infraction in its notice, failing which, the Operator shall have to take such Buses suffering from infractions out of Bus Services at its risk and cost. In addition, pre-estimated Penalty towards non-availability of Bus for Bus Services as indicated in Schedule X shall be payable by the Operator;
d. In the event of a Bus being held up on account of any infraction, the cause/ reason thereof needs to be recorded and maintained by the Authority and the same shall also be noted by the Operator’s Representative before any Penalty is imposed on this account;
e. If the Operator infringes any of the obligations of operating and maintaining Buses and/ or the equipment installed in the Buses and/ or at the Bus Depot, in accordance with the condition or as per the specifications prescribed herein and/ or by the Bus Manufacturer, the Authority shall have the right to impose a Penalty under this Article calculated in the manner prescribed under Clause 16.5.4;
f. If the Operator infringes any of the provisions related to quality of service for passengers, particularly when Operator’s conduct infringes/ disregards the respect and dignity of the users/ passengers, then for each parameter infringed, the Authority may impose a Penalty equivalent to that applicable for C2 Category for each day till the infraction persists;
g. The Authority may identify and individualize the conducts, leading to user service Penalty, by means of a manual for user service and quality regulation or any other manual or regulation issued or to be issued, taking account of complaints and claims it...
LEVY OF PENALTIES. Audit observed that the Authority did not levy penalty for deficient/non-performance despite the fact that there were relevant clauses in the concession agreements. Further the clauses of the concession agreements for recovering cost of the deleted items and remuneration paid to the IC were not implemented as elaborated below.
LEVY OF PENALTIES. 16.5.1 Penalty on account of Non-Performance
