The Punjab and Haryana High Court has paved the way for solid waste management company Ecogreen to resume operations in Gurugram with setting aside the termination of its contract by the Municipal Corporation of Gurugram (MCG) earlier This year. On Tuesday, the court ruled that MCG and the Haryana government failed to provide the mandatory 60-day notice required for termination of the contract, rendering the termination invalid.

The dispute dates back to January 2024, when the Haryana government issued a termination notice to Ecogreen over alleged irregularities in its waste management services. Tensions escalated after MCG reduced Ecogreen’s tipping fees by ₹1,000 per ton to ₹333 per tonne in 2023, saying the company had failed to establish the promised waste-to-energy plant in Bandhwari. Ecogreen challenged the reduction, leading to strikes and service interruptions.

On June 15, 2024, MCG officially terminated Ecogreen’s contract, with the approval of the Chief Secretary of Haryana. Ecogreen challenged the termination notice in the High Court on June 17, which subsequently suspended all action by MCG, including the launching of new tenders. On Tuesday, judges Arun Palli and Vikram Aggarwal finally ruled in favor of Ecogreen.

“Following the position outlined above and in view of the statements made by the learned counsel for the parties, the motion for summons is, accordingly, dismissed. Needless to say, this order does not constitute an expression of opinion on the merits of either party’s case, because as stated earlier, the authority will consider the concerns/grievances of the petitioner, strictly in accordance with the law,” the command said.

“The High Court declared the notice of termination invalid. We will now restart the process following proper procedures,” said Akhilesh Yadav, joint commissioner, MCG.

According to MCG officials, the contract, initially signed in August 2017 and set for 20 years, was terminated after seven years due to Ecogreen’s poor performance. Officials said Ecogreen was expected to achieve targets such as 100% household coverage for door-to-door waste collection within a year, 80% recycling of collected waste within the same time frame and sorting of 100% of waste at source within six months. . The company failed to achieve these goals, they added.

Following the verdict, Ecogreen expressed its intention to improve sanitation services. “Ecogreen is now an entirely Indian company. Our aim is to restore the cleanliness of Gurugram and Faridabad and improve their ranking in the Swachh Survekshan survey. Previously, we were dealing with a “mafia” that collected waste, hindering the operation of the business and delaying services. This order provides us with a platform to implement and raise the health standards of the two cities,” said Uma Maheshwar Reddy, Managing Director, Ecogreen Energy.

Meanwhile, two private companies have been managing waste collection since Ecogreen dissolved. However, their performance has not met the standards previously set by Ecogreen, with piles of garbage still visible across Gurugram, according to residents. MCG has assured residents of improved sanitation efforts as it reviews its agreement with Ecogreen.

The Punjab and Haryana High Court has paved the way for solid waste management company Ecogreen to resume operations in Gurugram with setting aside the termination of its contract by the Municipal Corporation of Gurugram (MCG) earlier This year. On Tuesday, the court ruled that MCG and the Haryana government failed to provide the mandatory 60-day notice required for termination of the contract, rendering the termination invalid.

The dispute dates back to January 2024, when the Haryana government issued a preliminary notice to Ecogreen for alleged irregularities in its waste management services. Tensions escalated after MCG reduced Ecogreen’s tipping fees by ₹1,000 per ton to ₹333 per tonne in 2023, saying the company had failed to establish the promised waste-to-energy plant in Bandhwari.

Ecogreen challenged the reduction, leading to strikes and service interruptions.

On June 15, 2024, MCG officially terminated Ecogreen’s contract, with the approval of the Chief Secretary of Haryana.

Meanwhile, Ecogreen challenged the termination notice in the High Court on June 17, which subsequently suspended all action by MCG, including the launching of new tenders.

On Tuesday, judges Arun Palli and Vikram Aggarwal finally ruled in favor of Ecogreen.

“Following the position outlined above and in view of the statements made by the learned counsel for the parties, the motion for summons is, accordingly, dismissed. Needless to say, this order does not constitute an expression of opinion on the merits of either party’s case, because as stated earlier, the authority will consider the concerns/grievances of the petitioner, strictly in accordance with the law,” the command said.

“The High Court declared the notice of termination invalid. We will now restart the process following proper procedures,” said Akhilesh Yadav, joint commissioner, MCG.

According to MCG officials, the contract, initially signed in August 2017 and set for 20 years, was terminated after seven years due to Ecogreen’s poor performance.

Officials said Ecogreen was expected to achieve targets such as 100% household coverage for door-to-door waste collection within a year, 80% recycling of collected waste within the same time frame and sorting of 100% of waste at source within six months. . The company failed to achieve these goals, they added.

Following the verdict, Ecogreen expressed its intention to improve sanitation services. “Our aim is to restore the cleanliness of Gurugram and Faridabad and improve their ranking in the Swachh Survekshan survey. Previously, we were dealing with a “mafia” that collected waste, hindering the operation of the business and delaying services. This order provides us with a platform to implement and raise the health standards of the two cities,” said Uma Maheshwar Reddy, Managing Director, Ecogreen Energy.

Meanwhile, two private companies have been managing waste collection since Ecogreen dissolved. However, their performance has not met the standards previously set by Ecogreen, with piles of garbage still visible across Gurugram, according to residents.

MCG has assured residents of improved sanitation efforts as it reviews its agreement with Ecogreen Energy.