'Embarrassing...': Swiss firm slaps legal notice on Eknath Shinde-led Maharashtra govt over unpaid Davos bills; political storm erupts

In a significant embarrassment for the Eknath Shinde-led Maharashtra government, a Switzerland-based firm has served a legal notice over alleged non-payment of dues for hospitality services rendered during the World Economic Forum (WEF) in Davos earlier this year. The controversy has sparked a political storm, with opposition leaders accusing the government of financial mismanagement and overspending.

The Swiss company, SKAAH GmbH, claims that the Maharashtra Industrial Development Corporation (MIDC) has failed to clear a pending amount of Rs 1.58 crore for services provided to Chief Minister Eknath Shinde, ministers, and officials during their visit to the WEF in January. While the MIDC has reportedly paid Rs 3.75 crore, the remaining balance remains unpaid, according to the company.

According to a repot in The Indian Express, the notice, dated August 28, was addressed to several key entities, including the MIDC, the Chief Minister’s Office, the External Affairs Minister S. Jaishankar, and the WEF itself. It warns of a potential lawsuit if the dues remain unsettled, stating that SKAAH GmbH has faced substantial financial losses due to the delay. The notice emphasizes the company's faith in the MIDC as a government organisation and laments the damage caused by the unpaid bills.

MIDC CEO P. Velrasu expressed ignorance about the notice, stating, “I am not aware of any such notice. However, MIDC will review the documents and take necessary action.” Despite this, the issue has already fueled opposition criticism.

The Maha Vikas Aghadi (MVA) opposition, particularly leaders like Aaditya Thackeray of the Shiv Sena (UBT) and Rohit Pawar of the NCP, have seized the opportunity to slam the Shinde government. Thackeray accused the government of grossly overspending on the Davos trip, calling for accountability and transparency in the state’s financial dealings. Pawar warned that such mismanagement could tarnish Maharashtra's reputation as a viable destination for international investment, stressing, “Such insolence by the Maharashtra government could have repercussions at a forum like Davos.”

Admitting the legal notice was received, state industries minister Uday Samant defended the government, stating, “We have not overspent. These allegations are being made by MVA MLAs. Our legal team will respond to this notice and investigate the matter.” However, opposition leaders are undeterred, with Pawar asserting that the fallout from this incident could damage Maharashtra’s standing in the eyes of foreign investors.

The Swiss firm's notice underscores the broader consequences, claiming that the issue is damaging international relations between India and Switzerland. It also highlighted that the services provided exceeded the original agreement, as additional visitors attended the WEF convention. Despite fulfilling these extra demands, the company claims its repeated requests for payment were met with excuses and delays by the MIDC.

The legal notice further alleges that the MIDC’s failure to settle the payment has caused deliberate harm, not only to the Swiss company but also to the individuals it employs, leading to significant economic losses.